A time-based stop loss is athat is initiated after a pre-determined amount of time has elapsed. It can be automated or manual and in both cases, your is closed to allow you to seek a better or opportunities for your .
Time-based stop losses are also sometimes referred to as "time stops".
How are time-based stop losses used?
Time-based stop losses are often used if the market does not seem to be moving in either direction, meaning that neither your stop loss norhas been hit for a certain period of time.
Rather than leaving yourtied up in a trade where there isn't much movement, you can use a time-based stop loss to exit after a certain amount of time has elapsed, leaving you free to use that capital for other opportunities.
Also, if you prefer not to leave your trades open overnight or over the weekend, you could set a time-based stop loss to close your positions and avoid the risks associated with.
To learn more about the different types of stop losses, read our lesson: