> For the complete documentation index, see [llms.txt](https://tradefox.gitbook.io/tradefox-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tradefox.gitbook.io/tradefox-docs/trade-order-execution/stop-loss.md).

# Stop Loss

**What it is:** Automatically closes a position if price moves against you.\
**How it works:**

* Same toggle as **Take Profit / Stop Loss.**
* Set a stop price (in cents) **or** a % loss threshold.\
  **When to use:** To protect against downside risk on open positions.\
  **Example:** Buy YES at 60¢, set Stop Loss at 50¢. If price falls, position is sold with a 10¢ loss per share.

**Why you need it:** These markets can gap hard on new info. A stop loss prevents you from holding a bad bag when liquidity dries up, cutting your risk before the market runs away.\
**Example:** You buy YES at 60¢, set Stop Loss at 50¢. If bad news hits and bids evaporate, you’re out at 50¢ instead of being trapped lower.

Note: Order placement is dependent on Market Liquidity