損切り

• Reading: そんきり
• Romaji: sonkiri
• Kanji breakdown: 損 (son) — loss; 切 (ki) — cut, sever
• Pronunciation: /so.ɴ.ki.ɾi/

Meaning

Cutting losses; stop-loss; closing a position at a loss. The deliberate act of selling an asset at a loss to prevent further deterioration.

Central to trading and investment discipline. 損切り (or 損切る as a verb) describes the rational decision to exit a losing position rather than holding it in hope of recovery. The psychological difficulty of 損切り — known as the disposition effect — is a major topic in behavioural finance. Also used metaphorically in business to mean abandoning a failing project or partnership.

Examples

1. 株価がさらに下がる前に損切りを決断することが長期的な資産防衛につながる。 Deciding to cut your losses before the share price falls further leads to long-term asset protection.
2. 感情的になって損切りできずにいたことで、損失は当初の三倍に膨らんだ。 By becoming emotional and being unable to cut losses, the damage swelled to three times the original amount.
3. ベテランのトレーダーほど素早く損切りする習慣が身についている。 The more seasoned the trader, the more ingrained the habit of cutting losses quickly.

Usage Guide

Context: trading, investment, risk management

Tone: neutral

Origin & History

Compound of 損 (son, loss) and 切り, the noun form of 切る (kiru, to cut). The metaphor is cutting off a loss before it grows larger — a decisive severance rather than passive endurance.

Cultural Context

Era: Modern

Generation: Adults

Social background: Investor/Trader