What is Stop-Loss?
Quick answer
A stop-loss is an order that automatically closes a position once it reaches a set losing price, to cap the loss on that trade. It matters in copy trading because it bounds the downside on individual positions, and RelayTrades also enforces account-level limits like a daily-loss cap and a one-tap kill switch on top of any per-trade stops.
A stop-loss is one of the most basic risk-management tools in trading. It is a pre-set exit that limits how much a single position can lose before it is closed.
How a stop-loss works
You set a price below your entry (for a long position) at which the position should be closed automatically. If the market reaches that price, the stop triggers and the position is exited, capping the loss on that trade. Stops are not perfect: in fast markets a position can fill below the stop price (see slippage), and a stop set too tight can be hit by normal noise and close a position early.
Why it matters in copy trading
When you copy a trader, their exits, including any stop-losses, are part of what gets copied, so a position closes when theirs does, sized to your account. On top of individual-trade stops, account-level controls matter just as much: RelayTrades lets you set a daily-loss cap and hit a one-tap kill switch that halts automation and flattens open positions, which bounds losses across your whole account, not just one trade.
Frequently asked questions
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