Glossary
What is a stop-loss order?
Also called: SL, stop loss, stop order, stop market order
Updated Ninja Terminal team
Definition
A stop-loss order is a conditional order that closes a position when price moves against you to a trigger level you set. For a long, the trigger is below entry. For a short, it is above entry. A stop-market order then sells or buys at the best available price, which may be worse than the trigger.
A stop-loss order turns a planned maximum loss into a resting instruction. It stays inactive until the trigger price is reached.
How does it work?
Example: you are long BTC from 60,000 and set a stop-loss at 58,500. If price reaches the trigger, the exchange sends a market order to sell. In a fast move, it may fill at 58,300. That difference is slippage. To control the price you can use a stop-limit order, which risks not filling.
The trigger price can be based on the last price or the mark price. A mark price trigger is less sensitive to short spikes on one venue. A stop-loss is normally reduce-only so it cannot open a new position.
Does a stop-loss protect from liquidation?
Only if it triggers and fills before the liquidation price. In a gap or a thin market it can fill beyond your stop, and in extreme cases after liquidation has started. Place stops with some distance from the liquidation level.
How do venues name it?
| Venue | Order types |
|---|---|
| Binance (USD-M) | STOP and STOP_MARKET |
| Hyperliquid | “Stop Market” and “Stop Limit” |
| OKX, Bybit | Attached or separate stop-loss settings; the API fields differ |
See the guide on take-profit and stop-loss by exchange for the venue details. Ninja Terminal supports Stop and Stop Limit order types, and stop-loss at entry.
Frequently asked questions
Is a stop-loss guaranteed to fill at my price?
No. A stop-market order fills at the best available price after the trigger, which can be worse than the trigger price.
Should a stop-loss use mark price or last price?
Mark price is smoother and less affected by one venue's spikes. Last price follows the actual trades more closely. Choose based on how you want the order to behave.