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.
Stop-Loss and Stop-Limit Orders. You may be surprised what your broker will do for you. Nov 11, 2004 at 12:00AM. When you place trading orders with your broker, you have more options than just barking buy! or sell!. There are lots of orders that can accomplish lots of things. For example, if you bought a stock at $20 that is now trading at $50 and you want to sell it if it drops to $40 (locking in a 100% gain), there's a certain kind of order you may want to place -- either a stop-loss or stop-limit order.