A Stop-loss order is a function that helps an investor to limit the losses in case the trade is going against their predictions and expectations.
A stop-loss order is an advanced trade order that most brokerages let you place. A stop-loss order is meant to limit the amount of money an investor could lose on a trade. It’s a system that lets you sell a stock when it hits a certain price. This way, if the stock price goes down, you lose less money.
How it works is as follows:
Let’s say that you bought shares of Company X for INR 100 per share. Now that the market is unstable, you want to make sure you don’t lose too much. A stop-loss order could be set at INR 90. This means that if the price of Company X’s shares drops to INR 90, your shares will be sold imm…