Stop Loss Limits - Investing Guide - The Share Centre

Please remember: Our website can help you make informed decisions, not provide personalised advice. If your investments fall in value, you could lose money.
Tax allowances and the benefits of tax-efficient accounts could change.


Minimise potential losses by automatically selling your shares if they drop to a specified price

By setting a stop loss on your investment, you can minimise potential losses or guarantee profits by automatically triggering a sale when they reach or fall below the price you've set. The order will trigger at your set limit (in pence) and sell at the 'best price'. The trigger is not a guarantee and the shares can be sold above or below your trigger price. 

Example 1: Minimising losses when buying shares

You buy a share for 105p. If you set a stop loss at 100p when you buy, a sale will be triggered when the price drops to or below that point, allowing you to minimise your losses.

Example 2 - Ensuring a profit when reviewing shares

You bought a share for 105p. You review your investments every week and notice that its current price is 150p. While you don't want to sell the share now, having made a profit of 45p, you want to ensure you get at least 25p gain on each share. In this instance you would set a stop loss of 130p (105p purchase price plus 25p gain) to ensure your profit.


Share of the week

Share of the week

Our experts highlight a company they believe has good prospects.