A stop-loss order is a trading instruction given by a trader to automatically sell a digital asset when its price reaches a specific pre-set level. The purpose of a stop-loss order is to limit potential losses by triggering an order if the price of the digital asset drops to or below the specified stop price. It is a risk management tool used by traders to protect their positions and minimize potential losses in volatile markets.

NOTE: In Primex, a stop-loss is executed if the price of the position asset decreases and reaches a certain value set by the Trader. The oracle price works as a trigger for stop-loss.