Stop loss
A level set in advance at which a position is closed to cap the loss.
When the metric lies
On an illiquid security and at the open, the order fills worse than the level given: a stop caps the intention, not the execution price.
A level set in advance at which a position is closed to cap the loss.
On an illiquid security and at the open, the order fills worse than the level given: a stop caps the intention, not the execution price.