1, stop loss is also called "cutting meat", which means that when the loss of an investment reaches a predetermined amount, the meat will be cut in time to avoid further loss. Its purpose is to limit the loss to a smaller range when the investment goes wrong. An important difference between stock investment and gambling is that the former can limit the loss within a certain range through stop loss and maximize the return on success. In other words, a stop loss makes it possible to get a bigger profit at a smaller cost. The fact that there are countless blood in the stock market shows that an unexpected investment mistake is fatal enough, but stop loss can help investors save the day.
2. The limit is a daily limit set by the stock exchange, that is, if the stock falls to the maximum of-10% (or -5%), it is called the limit.