What are stop-loss order strategies?

What are stop-loss order strategies?

Stop-loss order strategies are techniques used by traders to limit potential losses by automatically selling a security when it reaches a certain price.

How do I set a stop-loss order?

To set a stop-loss order, you need to choose a price level at which you want to sell your asset to prevent further losses.

What are the different types of stop-loss orders?

The main types are standard stop-loss orders, trailing stop-loss orders, and guaranteed stop-loss orders, each with unique features.

Can stop-loss orders guarantee profits?

No, stop-loss orders are designed to limit losses, not to guarantee profits. They can help protect gains but are not foolproof.

What should I consider when setting a stop-loss?

Consider factors like market volatility, your risk tolerance, and the asset's price movement when setting a stop-loss.