What is the full form of FLLS in the Share Market?

The FLLS full form in the share market is Floor Limit of Loss. The phrase “Floor Limit of Loss” (FLLS) describes a risk management tactic used in the share market to cap possible losses on investments. Similar to placing a “stop-loss” order, this strategy can also be a component of a more comprehensive risk management plan.

Purpose of Floor Limit of Loss Orders:

The purpose of FLLS is to preserve capital, follow a more systematic approach to exiting from losing positions, and avoid making decisions out on emotions. FLLS helps in protecting the portfolio from drawdown and it also ensures that the losses do not exceed a tolerable level. It also makes sure that sufficient capital is still available for future investments.

Benefits of FLLS:

By establishing boundaries, it helps prevent disastrous losses. As it imposes predetermined rules, the chances of emotional decision making are mitigated. Assures investors that their losses will be limited, giving them a sense of security. A thorough risk management plan that includes the implementation of a Floor Limit of Loss can assist investors in safeguarding their cash and upholding a disciplined investment style.