Smart Money’s Shield: How HNIs Use Stop-Losses Across Global Markets
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In volatile markets, protecting capital is as important as generating returns. From retail investors in India to high net-worth individuals (HNIs) allocating capital across global markets, the use of stop-loss orders has become a core risk-management tool. Whether one is trading Indian equities, US stocks or global portfolios, understanding how stop-loss orders work—and how to use them effectively—can make the difference between disciplined investing and emotional decision-making. What Is a Stop-Loss Order? A stop-loss order is an instruction placed with a broker to automatically sell a security when its price falls to a predefined level. The primary objective is to limit potential losses on an open position. Once the stop price is reached, the order is triggered and executed at the best available market price. In rising markets, stop-loss orders act as a safety net. In falling or volatile markets, they help investors avoid catastrophic d...