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Home>Courses>Trading 101>Lesson 4 of 8

Stop and stop-limit orders

Decide your exit before you enter, and let the stop do its job.

Trading 101·Lesson 4 of 8

All lessons

By the end of this lesson you'll be able to:

  • 01Define a stop loss
  • 02Explain why you set it before entering
  • 03Place a stop at a sensible level
1

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is a Stop Loss? The Ultimate Guide to Risk Management
Key terms
Stop LossRisk ManagementPosition Sizing

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

  1. Question 01

    What is the purpose of a stop loss?

  2. Question 02

    When should you set your stop loss?

  3. Question 03

    You plan to exit a long trade if price falls to 96. Where should you place your stop?

  4. Question 04

    Long at 100, stop at 96, size 50 units. Your maximum loss is about:

  5. Question 05

    Which of these is a dangerous habit?

  6. Question 06

    Price drifts toward your stop and you widen it to give it room. What does this usually do?

  7. Question 07

    Where should a stop loss be placed?

  8. Question 08

    A stop placed at a random round number, rather than a technical level, tends to be what?

  9. Question 09

    How does setting the stop while calm, before entering, mainly help?

  10. Question 10

    What is the main benefit of a stop loss?

Answered 0 of 10 · pass 70% (7/10) to complete

Trading 1014 of 8
  1. How to start trading
  2. Bid, ask, and the spread
  3. Market vs limit orders
  4. →Stop and stop-limit orders
  5. Understanding leverage
  6. Margin and margin calls
  7. Liquidity and slippage
  8. Pips and lot size
  9. ⚑Final Assessment· 20 Q