Risk

What is stop loss?

An instruction to sell automatically if the price falls to a level you chose.

Explained in more detail

It caps how much a single trade can cost you, so one bad position does not damage the whole portfolio. It is not a guarantee. In a fast falling market the actual sale price can be worse than the level you set.

An example

For instanceBought at ₹500, stop loss at ₹455, so the loss is limited to roughly 9%.

Why this matters to you

You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.

On AlphaVik, any time stop loss appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.

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