#CEXvsDEX101 Stop loss strategies are essential tools in trading to limit potential losses and protect capital. They involve setting a predetermined price at which a trade will automatically close if the market moves against the position. Common strategies include fixed stop loss, trailing stop loss, and volatility-based stops. A fixed stop sets a specific price level, while a trailing stop adjusts as the market moves in favor of the trade. Volatility-based stops consider market fluctuations for more flexible protection. By using stop loss strategies, traders can manage risk more effectively, maintain discipline, and avoid emotional decision-making during volatile market conditions.