Stop Loss. Beskytter dig mod tab.

 

Definition: Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading. This is an automatic order that an investor places with the broker.

When it comes to hunting stops in the Forex markets, the large institutions know that there are many traders who are highly levered and will have stops above and below current levels.

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Stop loss orders are designed to limit the amount of money that is lost on a single trade, by exiting the trade if a specific price is reached. For example, a trader might buy a stock at $40 expecting it to rise, and place a stop loss order at $ If the price goes against the trader's.

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