What is stop loss and how it is used? This is a Vinod about a new investor, and he is to be Stop loss. His friend Ashish, it is the method that is used by investors as a Vinod to say that a stop loss where you can limit your losses. This is an automatic stop loss orders on your stock investors that they will arrive at a particular broker to sell at this price. Eg. Ashish has bought 50 shares in the company at the rate of Rs 1000 Infosys. And soon was down to 9 per 60 shares of the price. At the circumstances in order to reduce the loss of your stop loss order Ashish 9 50 Rs. To avoid damage when the stock price will be more for the purposes of the stock over Rs 9 to 50 will sell shares. Suppose the stock price has been on the other side to the 1400 rupee Ashish Sets the maximum profit-booking by keeping hold its shares. So he set loss on the order of 1300 new stop. Ashish is the kind of safe-keeping your investment profits and avoiding potential damage.