Stop-loss order

A stop-loss is an order that automatically sells (or, for a short position, buys back) when the price reaches a level you choose, called the stop or trigger price. Its purpose is to cap your loss on a trade without needing to watch the screen.

For example, if you buy bitcoin at ₹75 lakh and set a stop-loss at ₹70 lakh, your position will be sold if the price falls to that level. A stop-market order becomes a market order when triggered and almost always executes, but in a fast crash it can fill well below the stop price. A stop-limit order becomes a limit order at a price you set, which avoids a bad fill but may not execute at all if the price gaps past it.

Trailing stops move up automatically as the price rises, locking in gains. Placing stops too tight means normal volatility will trigger them; placing them at obvious round numbers can make them targets for "stop hunts".