What is Stop Loss?

An order placed with a broker to sell (or buy) an asset when it reaches a certain price, to limit losses.

In-Depth Explanation

The most important tool for risk management. A stop loss automatically closes your trade at a pre-defined level if the market moves against you.

"You buy at 1.2500 and set a stop loss at 1.2480 to ensure you only lose 20 pips if the trade fails."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.