Please eli5, would somebody be so kind to explain what a stop loss is to me?
I keep reading and I just go huh. Numbers and economics ive always found confusing. Is a stop loss a point at which if the stock drops you go ok I call it quits and you don’t panic or buy or sell anything after said point? Or is it a point where if said stock drops to a certain point, an automatic function is in place to purchase a set amount of said stock? I don’t know. Any explanation at all would be appreciated!
Edit: Thankyou Thankyou Thankyou for all your replies! I appreciate it and you’ve given me hope that I can learn new things I otherwise would’ve had no idea where to start with
In: 3
A stop loss order is an (optional) order put in place by an investor in a stock or other asset. If the price of the stock or asset falls to a certain value then a sell order is automatically placed, reducing the impact to the investor of the fall in price (stopping the loss).
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