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Stop Loss

A preset order that closes a trade at a defined level to cap the loss.

Also known asSLStop

Definition

A stop loss (SL) is a resting order that exits a position at a predefined price to limit loss. It operationalizes the size of risk you accepted before entering.

In plain English — A stop loss is the price level at which a trade closes automatically so the loss cannot exceed a set amount. It turns your per-trade risk from an idea into an enforceable rule. A logical stop usually sits behind a structural market level, not an arbitrary number.

Example

Buy at 1.2000 with a stop loss at 1.1950. If price hits 1.1950, the trade closes for a 50-pip loss. SL and numbers stay LTR and English.

Related terms

Where you see this in the app

Educational content only. Map.Trade does not provide financial advice or trading signals.

Why it matters

Without a stop loss, one wrong trade can consume a large part of the account. The stop ensures no trade is larger than your planned risk.

Frequently asked questions

Is a stop loss guaranteed?

Under normal conditions yes, but during price gaps or thin liquidity it may fill at a different level due to slippage.

Stop Loss — Trading Glossary · Map.Trade