Stop-loss — meaning explained

Stop-loss: An automatic sell if the price falls to a set level.

What it means

It caps a loss without you watching the screen, but a sharp temporary dip can trigger it and push you out of a good long-term holding.

Category

Risk — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.