With a “Stop Loss” order, losses can be contained or, theoretically, a profit could be realized after a loss.
You can add a stop loss to an order when it is opened, or you can adjust an existing position and do so at a later date. It could likewise be joined to a Pending Order. On buy positions, a stop loss must be set below the current market price; on sell positions, a stop loss must be set above the current market price.
Market execution is the method used to execute all stop orders, including stop losses, so that when an order is triggered, it is filled at the price that is currently being offered in the market. This indicates that you can have “Negative Slippage,” which is when your price is far lower than your stated stop level, especially during periods of strong volatility.