What Is Stop-Loss and Why Is It Essential for Every Trader?
In trading, success is not just about profits—it's about protecting your capital. A stop-loss order helps do just that.
What Is a Stop-Loss Order?
It’s an instruction to sell a stock at a certain price to limit your losses. For example, if you buy at ₹500 and set a stop-loss at ₹480, your stock sells at ₹480 to prevent bigger losses.
Why Use a Stop-Loss?
- Protects capital from unexpected moves.
- Prevents emotional trading during volatility.
- Manages risk by defining loss limits.
- Saves time by automating trade exits.
Tips for Setting Stop-Loss
- Use charts and technical levels.
- Account for market volatility.
- Match your risk-reward strategy (e.g., 1:2).
How SmartStopLoss.com Helps
SmartStopLoss.com helps you quickly calculate stop-loss and target prices based on your input. It supports both Indian and US markets and simplifies trading for all levels.
- Automatic stop-loss & target levels
- Support for India & US stock markets
- Customizable risk-reward tools
- Simple, mobile-friendly design
FAQs About Stop-Loss
What's the difference between stop-loss and limit order?
Stop-loss becomes a market order when triggered. A limit order only executes at your set price or better.
How much should I set for my stop-loss?
Depends on your risk tolerance and trade strategy. Use our calculator to find an ideal level.
Can stop-loss orders fail?
In fast-moving markets, slippage can happen, but stop-losses still offer better protection than none.
Should I use the same stop-loss for all trades?
No. Adjust based on each trade’s volatility and timeframe.
How does SmartStopLoss.com calculate stop-loss?
It uses your entry price and risk % or support levels. Advanced tools like ATR help refine your stop levels.
Final Thoughts
Stop-losses are essential for smart trading. Start using SmartStopLoss.com to protect your trades and trade with confidence.
Questions? Contact us. Happy trading!