What is a ‘stop loss’ order & why should I use it?

that’s made an unfavourable move. When you place a stop loss order with a broker, you’re requesting to close the position once the instrument reaches a certain price. This is helpful as it means your trades need less monitoring and can help to limit losses, particularly in volatile markets.

Please also note that a stop loss is by no means a guarantee; positions may be affected by price gaps over market closures, data release or other economic factors.