In the currency market, investors can make significant gains while also incurring significant losses due to the tremendous leverage present. To manage their holdings, investors should use a trading strategy that includes stopping and restricting orders. Stop and limit orders are used in the forex market in the same way as they are used in the stock market. By placing a limit order, an investor can specify the lowest and highest price at which they wish to buy or sell, while a stop order allows an investor to specify the specific price at which they wish to buy or sell. Long-positioned investors may place a limit order at a price higher than the current market price in order to profit, and a stop order at a price lower than the current market price in order to reduce loss. In order to reduce risk, an investor with a short position should set the first target price below the current price, as well as a stop order above the current price.