Stop-Loss
A stop-loss is an order placed with a broker to automatically sell a security when it reaches a predetermined price. This tool is designed to limit an investor's potential loss on a position.
For example, if you buy a stock at $50 and set a stop-loss at $45, your broker will automatically place a sell order if the stock's price falls to or below $45. This helps to protect you from further losses in a declining market. It is a fundamental risk management tool for traders and investors.