Stop loss

Stop loss orders refer to a disposal by sale of held stocks or crypto assets in the face of taking a loss.

Traders want to cut their losses when they see a fall in price of their held assets without an expected rise.

If traders continue to hold their assets while the price continues to fall, there is a concern that they will take even larger losses.

The opposite of this, holding the assets until the price rises and then selling them off, is called profit-taking.

*This is not a solicitation to perform any specific type of trading method. When trading on our exchange, please ensure that you fully understand the risks of using crypto assets, use your own judgement, and trade responsibly.