What is a stop-loss order? How traders limit losses
By SendPay Business · · 2 min read
- 1Type in your own numbers
- 2The tool works it out
- 3See the answer clearly
A stop-loss order is an instruction to sell automatically if the price falls to a level you choose. It is meant to cap how much you can lose on a trade without having to watch the market all day.
How a stop-loss works
- You buy at one price, say 100.
- You set a stop at a lower price, say 90.
- If the price falls to 90, the order triggers.
- It becomes a market order and sells at the best price available.
Why you may get less than your stop price
Once triggered, a stop-loss sells at whatever price the market offers. In a fast fall, or when the market opens after a gap, that can be well below your stop. This is called slippage.
Try it
Name your platform and watch it come to life
Type a name, tap a colour and pick what it does. The phone changes as you go.
Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
Stop-limit and trailing stops
A stop-limit order turns into a limit order instead, so it will not sell below a price you set, but it may not sell at all if the price falls straight through. A trailing stop moves up as the price rises, keeping a set distance below the highest price reached.
Where SendPay fits
Order types vary by exchange, so check which ones are offered before you rely on them. SendPay platforms let your customers buy, sell and hold crypto next to their cash under your brand, with assets held with regulated partners and a trading fee you set. SendPay does not offer leverage or forex trading.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How do I work out a trading strategy's expectancy?
Enter your win rate, average win and average loss.
Trading expectancy calculator →What gain would win back a loss?
See the percentage gain needed to recover from any drawdown.
Drawdown recovery calculator →Where would my trailing stop be now?
Work out the stop level after a price rise and what it locks in.
Trailing stop calculator →Is my stop loss in the right place?
Check a trade's risk/reward ratio and the win rate needed to break even.
Risk/reward calculator →How big should a trade be for my stop?
Size it from your risk and stop distance.
Forex position size calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.