Stop Loss
A predetermined exit price to limit losses. In prediction markets, typically mental rather than automated.
In Depth
Stop Loss is a fundamental concept in prediction market trading. In platforms like Polymarket with thousands of active markets, understanding stop loss is essential for consistent profitability. TradeSphere data across 5,400+ markets shows that traders who master these concepts significantly outperform those trading on instinct.
In practice, stop loss connects to Take Profit, Risk-Reward Ratio, Drawdown. PolyPulse tracks these metrics and publishes weekly analysis. For hands-on application, PolyFire provides real-time market data and copy trading via Telegram.
Related Terms
3Take Profit
tradingA predetermined exit price to lock in gains. Prevents giving back unrealized profits during reversals.
Risk-Reward Ratio
riskPotential loss vs potential gain per trade. A $0.30 YES share risks 0.30 to gain 0.70 — roughly 1:2.3 ratio.
Drawdown
analysisPeak-to-trough decline in portfolio value. Maximum drawdown shows worst historical decline — key risk metric.
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