The concept
A is a pre-set exit that limits loss if price moves against you.
Why it matters
It turns an open-ended risk into a defined one — most of the time.
How markets interpret it
Stops placed too close get triggered by normal noise; too far means oversized risk.
Key takeaways
- Decide the stop before entry.
- Stops can slip in gaps.
Knowledge check
Moving a stop further away after entry…
Key terms · hover or tap for a definition