Benefits of Stoploss Order

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  • Stop loss help to reduce the pressure of monitoring your trade day-to-day.
  • The advantage of a stop order is you don’t have to monitor on a daily basis how a stock is performing.
  • This is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period of time.
  • A stop-loss is designed to limit an investor’s loss on a security position.
  • The order specifies that an investor wants to execute a trade for a given stock, but only if a specified price level is reached during trading.