A stop-loss order is a tool that allows investors to set a price at which they want to buy or sell a security automatically. While it can't guarantee zero negative returns, it can often prevent devastating losses.

If you have concerns about the potential loss of a substantial sum of money on a particular investment, it may be worth considering utilizing a stop-loss order. This enables the automatic selling of the security once the price declines to a predetermined percentage, such as 15%, below the original purchase price.

Essentially, this tool allows you to establish a threshold for the maximum amount of money you are willing to lose. As such, it helps you to control how much risk you are willing to embrace in your investments.
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Investing in securities or other financial instruments always involves the potential of losing your money. FlexInvest recommends considering your investment objectives and risks before investing. For more information, please read our Risk Disclosures Statement and our Terms & Conditions.