What is Stop Loss?

Question

What is Stop Loss?

Accepted Answer

A **Stop Loss** order is an instruction given to a broker to automatically close a trade when the market price reaches a specified, less favorable level, serving as a critical risk management tool to limit potential losses on a security or currency position.

Stop Loss

What is Stop Loss?

What is the primary function of a Stop Loss order in Foreign Exchange (FX) trading and how does it limit risk?

How do different types of Stop Loss orders, such as Market vs. Guaranteed, function in volatile FX conditions?

How does a Trailing Stop Loss differ from a fixed Stop Loss and when is it most effective in FX trading?

What are the best practices for strategically placing a Stop Loss order using technical analysis in the FX market?

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