Stop loss

The idea

An exit instruction or plan that limits intended risk; actual fills can gap or slip.

Try the scenario

A sell stop at 98 triggers during a gap and fills below 98.

Check your understanding

Which statement is supported by this definition?

• An exit instruction or plan that limits intended risk; actual fills can gap or slip.
• This concept guarantees the next five candles.
• A stop guarantees the exact maximum loss.

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