Definition
An order that closes a trade at a preset level if price moves against you, capping the loss.
Example
Buying gold at 2650 with a stop at 2635 limits the loss to $15 per ounce.
Related terms
Forex glossary
An order that closes a trade at a preset level if price moves against you, capping the loss.
Buying gold at 2650 with a stop at 2635 limits the loss to $15 per ounce.