To limit losses before they reach the liquidation point, stop-loss orders automatically close positions at a predetermined price. To prevent premature triggers, set them at important technical levels (for example, support at ₹950 for a ₹1,000 trade). A risk-to-reward ratio of 1:2 guarantees that profits outweigh risks, which lowers the possibility of liquidation in erratic markets.
How can stop-loss orders help minimize liquidation risk? Print
Created by: Himanshu Dwivedi
Modified on: Thu, 29 May, 2025 at 5:10 PM
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