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What is a Stop Loss order?

A Stop Loss order is an instruction given by a trader to close a position automatically at a specific price level, in order to limit potential losses. It might help limit excessive downside risk by triggering the order when the market reaches the specified stop-loss price. “Stop Loss” order will not necessarily limit losses to the intended amounts due to the prevailing market conditions which may render it impossible to execute such an Order at the stipulated price and the Company bears no responsibility whatsoever.