Learn how stop-loss orders limit losses and protect profits by automatically selling or buying securities when a specific price point is reached.

Using a stop-loss order is the most straightforward way to ensure that a loss stays manageable. When you set a stop-loss, you instruct your broker to sell a stock if it drops to a certain price.

An additional precautionary measure is to set stop-loss orders, which can help limit potential losses by automatically selling a stock if it drops to a certain price level, protecting your investment.