This starting point is critical because it is essential at this point for those who will deliver the technology, those who will use that technology, and those who have a stake in the project to reach agreement on its concept and definition. The process is represented in the figure below.
DEFINITION of 'Stop-Loss Order'. An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investorâs loss on a position in a security. Although most investors associate a stop-loss order only with a long position, it can also be used for a short position, in which case the security would be bought if it trades above a defined price.
However, there are a number of other important broker orders that investors can use to sell stocks for better prices or reduce their risk. One lesser known order is a stop-limit-on-quote order, which is an order investors can use to limit losses or buy stocks only after they've reached a certain price. What is a stop-limit-on-quote order? A stop-limit-on-quote order is an order that an investor places with their broker, which combines both a stop-loss order and a limit order. What the stop-limit-on-quote order does is enable an investor to execute a trade at a specified price, or better, after the stock price has reached the investor's desired stop price.