What is the stop loss?

Stop loss is the opinion or value at which the stock traders sell their stocks and evades the subsequent losses. In other words, the stop loss of a stock is the price after which there is no loss to you and at which point you decide the extent of possible losses in relation to a stock, which reduces your loss.

How does work

Not only at the time of decline, but it also are works even when stock prices increasing. For example, tell your broker about the same stock you bought at a price of 100 rupees, that if the stock reaches Rs 115, then it will be sold.

Why is it used?

Stop loss is used so that the damage in heavy upheaval can be avoided. Stock market emotions are strongly affected. In such a way, the more benefits it may have, the more damage can occur. Stop loss is the way to reduce this loss. Also, one advantage of this is that if you are not trading regularly and do not routinely monitor it, it can also be beneficial for you. In such a situation, Stop Loss can save you from many dangers.

It is important for you

Stop loss is very important for a short period, but if someone has to invest for a longer period then there is no significant importance for it. You should be prepared for yourself that there can be a big change in the market at any time.