Stop loss order
A stop loss order is an instruction to sell a UK-listed share if its price falls to, or below, a trigger price you’ve specified. This order type acts as a safety net for your investments. You set a specific price below the current market value, and if your investment drops to that level, it automatically triggers a sale. This limits your potential losses without you needing to watch the markets constantly. Through your AJ Bell account, you can set stop loss orders to manage risk on your holdings. They're particularly useful if you're holding individual shares and want protection against significant downturns. Just be aware that you aren’t guaranteed to sell at the desired price. The stop loss is a trigger for us to get the best price for you, which might be lower than what you wanted if markets are moving fast.