what does stop loss means in online trading? Please explain ?

Answer 1

A sell stop order (stop loss) means that when the stock's price drops to that level your order becomes a market sell order. Your loss is not necessarily limited to that price. If the stock is dropping quickly the actual transaction price might be significantly less than your order price.

A stop limit order may be a better choice. When the stock drops to your stop price, the order is converted to a limit order. This would prevent your selling at a much lower price than you anticipated. But if the stock is dropping quickly it could pass your limit and you wouldn't sell at all.

Note that terminology may vary between brokers.

Answer 2

Stop Loss Online

Answer 3

I copied it from
http://www.moneyforex.com/forex-faq.php
(here u can find many more definations)

A stop loss order is an order type whereby an open online forex trading position is automatically liquidated at a specific price. As an example, if an investor is long USD/YEN at 112.35, they might wish to put in a stop loss order for 111.75, which would limit losses should the dollar depreciate, possibly below 111.75.

Answer 4

A "stop loss order" is predetermined "stock price" order that the trader initiates and is executed by your broker to limit your loss if the market should turn against you. This is a very basic THEORETICAL explanation that does not take into account high volatility.

Answer 5

Stopping the loss at a fixed level to avoid deep losses otherwise will be the consequence.