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Investment Term of the Day
Stop-Loss Order
A stop-loss-order is a trading mechanism intended to limit the possible risk of loss on a trade. An order placed with a stock-loss-order includes an order to exit the trading position if the price of the investment moves to a certain level which represents a specified amount of loss in the trade. The trader is able to limit the risk in a trade to a set amount, if the market moves against the trade.
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