Generally speaking, the stop-loss order refers to the order that investors automatically buy and sell their orders at the specified market price in the financial trading market. Stop loss will also be called "cutting meat", so the stop loss order can also be vividly understood as a position order like cutting meat. The emergence of stop-loss orders is mainly to avoid the interference of human factors and lead to greater losses when investors are already at a disadvantage in market fluctuations.

How to use stop loss orders

In the stock or futures market, investors can set their own stop-loss orders. The function of stop-loss orders is not only to reduce losses for investors, but also to set a profitable liquidation order, so as to truly maximize profits. It is worth noting that when investors use stop-loss orders, they do not just set stop-loss orders at the market price higher or lower than the purchase price at will, but also need to consider the following points:

1, risk control, the risk value that each investor can bear is different, which needs to be measured according to the investor's existing investment funds;

2. To judge the market trend, the specific price position of the stop loss order needs to be selected according to the judgment of the current market trend. If the judgment is wrong, the order that could have been profitable will lose money because of the wrong stop loss.