Why Use a Stop Order?
Stop orders are a key part of disciplined risk management. They help traders and investors define risk, automate exits, and reduce emotional decision-making.
Benefits
- Protect capital from large losses.
- Ensure losses stay within a predefined percentage of account value.
- Automate exit strategies to avoid hesitation.
Disclaimer: For educational purposes only. This is not investment advice. Trading involves risk.
More Risk Management Topics
Stop-Loss Orders
Trailing Stop-Loss
Stop-Limit Orders
Why Use a Stop?
Risk to Capital
Important Limitations
Risk Management Overview