stop-loss order
/stɒp lɒs ˈɔːrdər/
an order to sell a security automatically when it reaches a specified price, limiting downside loss
stop-loss order in a sentence
“He set a stop-loss order 8% below his entry price to protect against a major decline.”
Origin of stop-loss order
Stop (Old Norse stappa to stop) + loss + order from Latin ordo row, arrangement
Related Words
limit order
an order to buy or sell a security only at a specified price or better
dollar-cost averaging
investing a fixed dollar amount at regular intervals regardless of price, reducing the impact of volatility
rebalancing
adjusting a portfolio back to its target asset allocation by buying and selling assets
alpha
excess return on an investment relative to the return of a benchmark index
beta
a measure of how much a security moves relative to the broader market; a beta above 1 means more volatile
P/E ratio
price-to-earnings ratio — the price of a stock divided by its annual earnings per share