Stop-loss
In short
A stop-loss is an order that automatically closes your position when price hits a defined loss level. It caps damage without you watching.
The stop belongs where your trade idea is proven wrong — not where it "stops hurting". Our lab measures it consistently: without hard stops, one outlier eats many small wins.
Can a stop-loss fill at a worse price?
Yes: once triggered it usually becomes a market order — in crashes or overnight gaps the fill is worse than the stop level.
Related terms
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