Stop loss

What is a stop loss? It's a standing order that automatically sells an asset once its price falls to a level you set in advance, capping how much you can lose on a trade. It matters because crypto markets move fast, and a stop loss protects you from a bad position turning into a disaster while you're asleep or away from your screen. Say you buy ETH at $3,000 and set a stop loss at $2,700. If the price drops to $2,700, the order triggers and sells automatically, limiting your loss to 10% instead of riding the price down further. One follow-up worth knowing: in thin or fast-moving markets, your order may fill below your stop price, a gap called slippage.