# What Is a Stop-Loss and How Is It Set?

> A triggered stop becomes a market order and the fill price can differ from the stop price [1] [2].

Last updated: 2026-10-22 · https://www.nx24.ai/en/rehber/zarar-kes-stop-loss

## What is a stop-loss?

An order that closes a position when price reaches a preset level. Its purpose is to cap the loss of a trade from the start.

## Ways to set it

Percentage-based (for example 5% below entry), structure-based (beyond a nearby support or resistance) and volatility-based (a multiple of ATR) methods are used.

## Trailing stop

As price moves in your favor the stop is moved along, locking in part of the gain, and it can be pulled to break-even.

## Common mistakes

A stop that is too tight is triggered by ordinary noise; one that is too far enlarges the loss. Moving the stop further away after entry breaks discipline.

## Triggering and fill price

A triggered stop becomes a market order and the fill price can differ from the stop price [1] [2]. A stop-limit order bounds that risk with a limit price, but the order may not fill at all [1].

## Things to watch

When price gaps, the order can fill at a worse price than the stop level. This page is educational, not investment advice.

## Frequently asked questions

**What happens when a stop order is triggered?**

It becomes a market order and the fill price can differ from the stop price [1] [2].

**Does a stop-limit order remove that risk?**

A stop-limit order bounds that risk with a limit price, but the order may not fill at all [1].

## Sources

1. [Stop Orders: Factors to Consider During Volatile Markets](https://www.finra.org/investors/insights/stop-orders-factors-consider-during-volatile-markets). FINRA, 2025. Accessed: 2026-10-22.
2. [Stop, Stop-Limit, and Trailing Stop Orders (Investor Bulletin)](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-15). Investor.gov (U.S. SEC Office of Investor Education and Advocacy), 2017. Accessed: 2026-10-22.

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Not investment advice. NX24 — https://www.nx24.ai/