⭐🥝The correct answer is 🚨 *C) An order to limit losses by selling a stock when it falls below a certain price*.

A stop-loss order is an instruction to sell a stock when it falls to a certain price, known as the stop price. This helps limit potential losses if the stock price drops unexpectedly. By setting a stop-loss order, investors can automatically sell their shares when the price falls below a predetermined level, reducing potential losses.

*Example:*

- You buy 100 shares of XYZ stock at $50.
- You set a stop-loss order at $45.
- If the stock price falls to $45 or below, your stop-loss order is triggered, and your shares are sold, limiting your potential loss.

*Benefits:*

- Limits potential losses
- Helps manage risk
- Can be used in volatile markets

*Other options:*

- *A) An order to buy a stock when it reaches a certain price*: This describes a buy limit order or buy stop order, not a stop-loss order.
- *B) An order to sell a stock when it reaches a certain price*: This is a general description of a sell order, but not specifically a stop-loss order.
- *D) An order to take profits by selling a stock when it reaches a certain price*: This describes a take-profit order or a limit order, not a stop-loss order.

By understanding stop-loss orders, investors can better manage their risk and protect their investments.#CandyDrop Is Live #USDT Market Cap New High #Can BTC Return to 100k?