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What is SL (Stop Loss)?

Basics

SL (Stop Loss)

A predetermined price at which a loss is cut. Short for Stop Loss; when the price reaches it, the idea is treated as wrong and the position is closed. Left alone, a loss grows at an accelerating rather than linear pace, and the smaller the remaining capital, the steeper the return needed to recover. The essence of a stop loss is deciding before entry where the idea counts as wrong.

SL (Stop Loss)we cut and leave herebefore it falls further

Lessons using this term (with diagrams)

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SL (Stop Loss) meaning — Trading glossary | MarketSurfer