stock market chart with a red stop marker Investing Basic

What Is Stop Loss in Trading? Explained for Beginners

Introduction: The Trader’s “Safety Net” Imagine you’re on a road trip. Your car has seatbelts and airbags—they don’t prevent accidents, but they protect you if one happens. A stop loss does the same for traders. It’s an automatic exit order that limits your losses if a trade goes wrong. But how does it work? And how do you set it correctly? […]