Trading
Stop-Loss
Loss Cut
Definition
Selling to limit losses when price falls to a set level
Explanation
A stop-loss is a predetermined exit point to prevent larger losses. For example, setting a 10% stop-loss means you'll sell if the stock drops 10%. Sticking to your stop-loss rules removes emotional decision-making. "Cut your losses short, let your winners run."
Example
Buy at $100, set stop-loss at $90 → Auto-sell if price hits $90