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- In order to reduce possible losses, stop-loss orders divide an asset automatically when its price hits a predetermined level. This can be an effective tool for risk management & shielding your investments from large market declines. You can also foresee possible risks & take proactive measures to safeguard your investments by keeping up with market trends and news. By distributing investments among stocks, exchange-traded funds (ETFs), & cryptocurrencies, diversification across asset classes helps minimise risk. Investments can be shielded from market volatility & risk by doing this. In addition to being a helpful tool for risk management, stop-loss orders help limit potential losses by automatically selling a security when it reaches a certain price. 25-05-22
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