Loss Aversion vs Mental Stop

Quick comparison to help you distinguish these two crypto terms.

Loss Aversion
intermediate
psychology

A cognitive bias in which the psychological pain of losing a given amount of money is experienced as approximately twice as powerful as the pleasure of gaining the equivalent amount.

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Mental Stop
intermediate
psychology

An intended exit price held only in a trader's mind without a corresponding exchange order placed, relying entirely on the trader's willingness to act manually when that price level is reached.

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