A stop loss order is an order made by a broker to buy or sell an investment instrument (either in the form of cryptocurrency or shares) when the price has reached a certain limit.  This order is designed to limit investors' losses. For example, a trader buys Bitcoin and sets a stop-loss order 15% below the purchase price.  So when the value drops, this order will be activated and Bitcoin will be sold as a market order. Although many traders associate this technique with long positions, you can also use it to protect short positions.  This means that the trading product that you have will be purchased if it is traded above a predetermined price.