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New Course
Concept
Stop Price
A
stop price
is a
predetermined price level
set by an investor at which a
stop order
is triggered to either buy or sell a security, acting as a
risk management tool
to limit
potential losses
or
lock in profits
. It is crucial for investors to carefully choose their
stop price
level to avoid
premature execution
due to
short-term market fluctuations
.
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