Interactive Market Course.
STEP 4. Set Stop LossThis is an order that helps to fix the losses and manage the risks of the transaction. In fact, this is a straight line, which is set at a specific level. If the price goes against you and touches Stop Loss, it will work, the position will be closed.
Important: Stop-loss does not guarantee that your position will close at a specified price. With a sharp and intense market movement, the chart may slip past the level you set.