What is Stop Loss Order? — Meaning, Definition & Example
Definition
A stop loss is an order placed with a broker to buy or sell a stock when it reaches a specified price, limiting potential losses. It is essential for risk management, especially in intraday and futures trading. Stop loss can be a fixed price or trailing (moves with the stock price).
You buy a stock at ₹200 and set a stop loss at ₹185 — if the price drops to ₹185, it automatically sells, limiting your loss to ₹15 per share (7.5%).
🇮🇳 Stop Loss Order in Hindi / हिंदी में
स्टॉप लॉस ऑर्डर — स्टॉप लॉस एक ऑर्डर है जो किसी निर्दिष्ट मूल्य पर पहुंचने पर स्वचालित रूप से शेयर बेचता/खरीदता है, संभावित नुकसान को सीमित करता है।
Stop Loss Order (Hinglish) — Stop loss ek order hai jo broker ke paas place karte ho — jab stock ek specified price pe pahunchta hai to automatically sell ho jaata hai, loss limit karne ke liye.