Orders and execution · Rookie
Stop-loss order
Also searched as: SL, stop order, stop loss
What does Stop-loss order mean?
A stop-loss order is intended to exit a position after an adverse price threshold is triggered. A conventional stop becomes a market order, so its fill can differ from the trigger.
Example
A stop triggers at $99 but fills at $98.80 during a fast decline.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
The stop price is not a guaranteed maximum loss unless an explicit guaranteed-stop product applies.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.