static stop-loss
[/ˈstætɪk stɒp lɔːs/]
nounpl: static stop-losses
stop-loss estático
1. A fixed price level set by an investor to automatically sell a security when its price falls to that predetermined amount, regardless of market conditions or volatility
He set a static stop-loss at $50 per share to limit his potential losses on the investment.
Ele estabeleceu um stop-loss estático em $50 por ação para limitar suas perdas potenciais no investimento.
2. A risk management tool in trading where the exit price remains constant and does not adjust with market movements
Using a static stop-loss strategy, the trader will exit the position once the stock reaches the predetermined threshold.
Usando uma estratégia de stop-loss estático, o trader sairá da posição assim que a ação atingir o limite pré-determinado.
In Brazilian financial markets, static stop-losses are commonly used by both retail and institutional investors as a fundamental risk management tool. The term is widely recognized in São Paulo's financial district (Avenida Paulista) and among traders at B3 (Brasil Bolsa Balcão). In the USA, this tool is essential in day trading culture, particularly in NYC's financial district, where traders routinely employ static stop-losses to protect against sudden market downturns.
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