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No, that is not what stop-loss orders are for. A stop-loss order only puts a sell offer into the market when the market prices falls below a certain threshold, there is no guarantee as to what price someone will actually buy your shares at, or that anyone will buy them at all.

If you want to have a hard limit on the loss, you'll have to buy a put option.



Technically the put doesn't guarantee anything since not everyone is too big to fail but for most purposes this is true.


Not sure why this is being voted down. A counterparty in an option agreement can become insolvent. This is typically analyzed under the name counterparty risk.

Much much much less common than a stock going down, but when large counterparties become insolvent, a lot of people start needing to write off big chunks of their positions.


Even then you have counterparty risk.




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