Stop Loss

A stop loss waits at the price where your trade idea is wrong and executes the exit for you, usually as a market order once touched. It is the mechanical enforcement of position sizing: stop distance times contracts equals planned risk.

Prop accounts effectively mandate stops. Daily loss limits and trailing drawdowns do not wait for hope to work, and platform-side auto-liquidation at the firm level is a far worse exit than your own stop. Placement belongs beyond structure (past the sweep, outside the zone), not at round numbers where everyone else's cluster sits.