[zAy0LfpBZLC8mAC]

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.

[awad]

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

[ABCLAW]

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.

[discodave]

Even then you have counterparty risk.