Advantage of StopLoss

You are here:
< Back to Knowledge base

A stop-loss is designed to limit an investor’s loss on a security position that makes an unfavorable move.

One key advantage of using a stop-loss order is you don’t need to monitor your holdings daily.

This convenience is especially handy when you are on vacation or in a situation that prevents you from watching      your stocks for an extended period.

The beauty of the stop-loss order is that it costs nothing to implement. Your regular commission is charged only once the stop-loss price has been reached and the stock must be sold.