How to Protect Your Investments During a Market Crash

Utilize Stop-Loss Orders

A stop-loss order is a type of order placed with a broker to buy or sell a security when it reaches a certain price. It is designed to limit an investor’s loss on a security position. Stop-loss orders are typically used to protect gains or limit losses on a security position. They are also used to limit the amount of time an investor holds a position, as the order will be triggered when the security reaches the specified price. Stop-loss orders can be placed with a broker advance or they can be after a security has already been purchased.