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What does stop loss mean?
Stop loss is a risk control strategy adopted by investors when investing. It refers to setting a price and automatically trading when the asset price reaches this price to reduce possible losses. Stop loss operation is common in financial markets such as stocks, futures, foreign exchange, etc., which can help investors stay rational in trading and avoid emotional trading and unlimited losses.

The significance of stop loss is to reduce investment risk and let investors control their trading risk in a rapidly changing market environment. By setting the stop-loss price, investors can stop the loss in time when the price falls and avoid the loss from expanding. On the other hand, when the asset price rises, investors can gradually increase the stop-loss price to ensure the maximum profit. Stop loss operation does not guarantee that investors can make profits, but it is an important way to protect account funds.

For investors, determining the position of stop loss is a very critical link. Too high a stop-loss price may lead to increased risk, and too low a stop-loss price may miss the best stop-loss opportunity. Therefore, investors need to combine market conditions, their own trading strategies and fund management plans to formulate their own stop-loss strategies. At the same time, investors need to stick to the stop-loss operation and don't give up the stop-loss for emotional reasons, which is also a very important point in investment. Stop loss is a rational and controllable investment strategy, which can help investors keep calm in trading, thus improving the success rate of investment.