1 Finance Denoting or relating to an order to sell a security or commodity at a specified price in order to limit a loss.
- If you bought a stock at $22 and are worried about it falling too low, you might place a stop-loss order to sell on it at $20.
- It may be wisest to enter orders that first protect your downside: many wise investors use the stop-loss order, which instructs your broker to buy or sell a stock once it has reached a certain price.
- One stock trading rule - regardless of your approach - is to use stop-loss orders as protection from downward price movements.
2 Military , US Denoting or relating to a policy of forcibly retaining members of the armed forces on active duty beyond their original agreed period of enlistment.
- Eight American soldiers today launched an extraordinary legal challenge of the Army's controversial stop-loss policy.
- Another soldier asked about the so-called stop-loss policy which has allowed the Pentagon to indefinitely extend troops' tours of duty.
- But nonetheless, the stop-loss policy is wrong; it runs contrary to the concept of the volunteer military set up in the aftermath of the Vietnam War.
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