What is a Stop-Loss order?

A stop-loss order is a request to sell a security once the market price reaches or falls below a customer-specified price. Once the target price has been reached or surpassed, the order becomes a "market" order. A stop-loss order is typically used to sell a security to lock in profits or limit losses if a security's price falls.

Note: Stop-loss orders are only available when selling a security to close a position.