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Stop Loss

Stop loss orders are orders that are placed after a position is opened.  This is typically set as a percentage of the opening price.  For example, if 100 shares of stock XYZ was purchased at 50, if a stop loss of 10% is set in the trading system, an order is sent to close the position when the price of XYZ reaches 45.  To set a stop loss within a trading system, review the Setting a Stop Loss topic.

See Also

Analyzing System Results

Setting a Stop Loss