Trading glossary · practical definition

What is stop-loss?

An order intended to reduce or close exposure after a predefined invalidation level.

Stop-loss in plain English

An order intended to reduce or close exposure after a predefined invalidation level.

Trigger price, order type, liquidity and slippage determine the final fill.

Practical example

A stop-market prioritizes exit; a stop-limit can remain unfilled in a fast move.

Common mistake

Moving a stop farther away after the setup is invalidated.

Related tools and guides

Important: TradingHub provides informational tools and scenario estimates, not financial advice. Verify fees, margin rules, availability and current terms with the relevant venue before acting.