the.com/stop loss
the order that admits defeat before your ego has to.
means a preset instruction to sell an asset automatically once it drops to a certain price, capping how much you can lose.
from emerged with organized stock exchanges in the 1800s as brokers needed a mechanical way to limit client losses without waiting on a phone call, long before algorithms made it instant.
no guaranteegaps can skip your price, losses still exceed target
military doublearmy also uses it to forcibly extend enlistments
trailing versionmoves up with profit, locks in gains automatically
hunting themtraders sometimes push price to trigger others' stops
for instance
flash crash 2010 — stop losses cascaded, dow fell 1000 points in minutes
gamestop squeeze 2021 — short sellers stops triggered, fueling the spiral upward
stop loss policy — us army used it to retain soldiers post-9/11