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Originally Posted by elderboy02
What is a stop loss?
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A stock tool. It will tell your broker/website to sell when the stock price dips below a set amount.
I.e. you own ATVI. The current price on it is around $16 per share. You might put a stop loss at $10. If the stock price hits $9.99 a share, the broker will trigger a sale of your stock.
Same idea holds true for a stop gain. If you set a stop gain at $20.00 and the price hits $20.01 then your broker will trigger a gain.
Note: these are also called limit loss and limit gains.
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