What Is Stop Loss?
An order that automatically closes your position at a predefined price to cap your loss. In leveraged trading a stop loss is not optional: it is the difference between a controlled losing trade and a liquidation.
Related Terms
- Take Profit An order that automatically closes your position once price reaches your profit target.
- Risk Management The set of rules that keeps you solvent: risking a small fixed percentage per trade, using stop losses, limiting open exposure and avoiding revenge trading.
- Liquidation The forced closure of a leveraged position when your margin can no longer cover the losses.
Where You Will Meet This Term
You will run into stop loss constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.