Definition
Mandatory stop-loss rule
A requirement that every position carries a stop-loss, sometimes within seconds of entry.
Some firms require a stop on every order (occasionally with a max distance); violations are usually soft (warning, trade voided) but repeat offences escalate.
Even where optional, a stop is the only structural defence against slippage through a news spike breaching the account.
Related terms
General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.