Stop Loss Order Example. A stop-loss order (also called a stop order or stop market order) is an order whereby the investor instructs the broker to automatically sell the stock if it drops to a certain price. Combining the two, we have the stop-limit order.
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Stop limit order: A stop limit order is a combination of a stop order and a limit order. So a trailing stop loss can further limit losses and even lock in gains. Combining the two, we have the stop-limit order.
A stop-loss order (also called a stop order or stop market order) is an order whereby the investor instructs the broker to automatically sell the stock if it drops to a certain price.
Although, we have taken an example above but to make sure that you understand the concept thoroughly, let's take another example.
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If you place an order to limit such a loss it is called as a Stop Loss order. What are stop loss orders and how to use them? To further illustrate this, let's take a look at a few real-world examples.