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What does stop-loss mean? - Definition
The meaning of stop-loss: It is an order you place on the trading platform with a foreign exchange broker and CFDs to sell financial instruments when their price reaches a certain threshold. The stop-loss order was developed to reduce traders' losses in currency trading and various financial instruments. It is good to have this tool sometimes when you are unable to sit in front of the computer and monitor the market all the time yourself. This article explains why it is necessary to place stop-loss orders, how to determine a stop-loss, as well as some examples of stop-loss strategies that traders can use.
What is the importance of a stop-loss order?
A
And
The logical answer to the question is - the same answer as the previous question about what a stop-loss order is in the foreign exchange market? Again, a stop-loss is an order you place on a trading platform for stocks and foreign currencies to sell those financial instruments when their price reaches a certain loss threshold you do not want to exceed. Moreover, the stop-loss order is designed to mitigate the investor's loss in a trade if it does not go in the desired direction of the market. Although most traders associate stop-loss orders with long buy trades, they can also be applied to sell trades.