<p><strong>Stop Loss</strong> is a risk management tool used in trading that automatically closes a trade at a predefined loss level, limiting potential losses.</p>
<p>Stop Loss matters as it helps traders manage risk and prevent losses from spiraling out of control. For example, setting a stop loss at $50 below your entry price on a $1000 trade limits your maximum loss to $50, even if the market moves against you.</p>