Definición
A rule that sells a position before the game ends once its price has fallen far enough, capping the loss instead of riding it to settlement. It can also sell a position that would have recovered.
Términos relacionados
- Take-profit — Sell early once the price has risen enough, locking in part of the gain before settlement.
- Bankroll — The money set aside for betting. Units and Kelly stakes are sized as a percentage of it.