Glossary
Stop-loss meaning in crypto.
A stop-loss marks where the trade idea is no longer worth defending.
Definition
A stop-loss is an exit level that closes a trade when price reaches the point where the original idea is no longer valid.
Its job is to contain the downside and keep capital available for the next setup.
In practice
Without a stop-loss, many traders keep holding because they do not want to admit the setup failed. The stop turns that emotional moment into a planned response.
The most common mistake is moving the stop farther away after the trade is already losing. That protects ego, not capital.
Related reading
See the term in a practice flow.
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