A stop-loss order is a purchase/sell request set to restrict the losses when you anticipate that the costs may move against your exchange. For example, on the off chance that you have purchased a stock at Rs 100 and you need to restrict the stop-loss at 90, you can submit a request in the framework to sell the stock when the stock comes to 90. In other words stop-loss is designed to limit an investor’s loss on a security position.
A stop-loss order is basically a tool used for short-term investment planning. It is used when the investor doesn’t want the pressure of monitoring a security on a day-to-day basis. The trade gets triggered automatically and the limits are decided in advance. This can be very helpful for small investors.