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What is a stop-loss order?

Stop Loss Orders

Use a stop-loss order to instruct your online investment broker to automatically sell your stock when it sinks to a certain price. The benefit of using a stop-loss order is that you can potentially lock in your earnings before a stock falls too far without having to watch the stock continuously. The downside is that if the stock drops drastically causing the stock to be automatically sold, you may not even get the price you placed the order for.

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