We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

What is a stop loss?

A stop loss is an order to sell an existing shareholding which is triggered if the bid price falls to, or below, a price (the stop price) set by you. This could be used when you buy a share to give you some protection and help minimise the loss should the share price fall.

For example, if you own shares of XYZ Co., which is currently trading at £5, and want some protection against a big decline, you could enter a stop-loss order to sell your XYZ holdings at £4. If XYZ traded below £4 at any time before the stop-loss expiry date (90 calendar days), your stop-loss order would be triggered and converted into a market order to sell XYZ at the next available price. If the next available price was £3.90, your XYZ shares would be sold at £3.90.

Before you place a stop loss, please read the terms and conditions and risks of the limit order service

Still need help?

Contact us

Email us