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Stop-Loss
Risk ManagementAn order to exit a position when the price moves against you to a predetermined level. Limits losses on any single trade. Can be technical (below support), ATR-based, or percentage-based.
Related Terms
Trailing Stop
A dynamic stop-loss that moves in the direction of the trade as price moves favorably, locking in profits while allowing the trade to continue.
Position Sizing
Determining how many shares or contracts to trade based on account size and risk per trade.
Risk-Reward Ratio
The ratio of potential loss to potential gain on a trade.