What is a stop loss order?

Question:

What is a stop loss order?

Stock Trading:

One problem that can harm many who trade in the stock market is that they can hold assets long past the point that they should and fail to sell to minimize losses. Holding a stock that is falling on the expectation it will bounce back can work sometimes, but stocks may be falling because the company is failing and all of your investment may be lost instead of a small amount.

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A stop-loss order is a request to a broker to sell stocks once their price falls below a certain level to minimize losses.

Stop-loss orders are...

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Investment Opportunities in Stocks and Bonds

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Chapter 25 / Lesson 16
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Investors often turn to the stock and bond markets when investing their money. Each market offers opportunities and risks for the individual investor. In this lesson, we'll explore the nature of these investments.


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