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Glossary

Stop-loss(Stop-loss)

An exit order that caps the loss at a predetermined level. It's where risk is defined; a trade without a stop isn't risk-free, it's a trade whose risk hasn't been measured.

Also written as: stop loss · SL · zarar durdur

The stop level is placed at the point where the scenario is invalidated: if a bullish expectation breaks down once the last low is taken out, the stop goes below that low. Once the stop distance is known, position size is calculated; the reverse (lot first, stop later) is wrong.

Moving the stop further away as the loss grows is the most common account-killing behaviour. A trailing stop drags the stop behind price to lock in profit.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.