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What is Stop Loss?

A Stop Loss is considered to be a good way to protect an investment. In fact it is one of the most commonly used risk management tools. This instruction will close a trade if a specified rate is reached. So if the market falls, losses can be prevented as the trade will be closed at that point.

It is optional for a trader to set a SL. However it is a good idea to use this option so as to prevent substantial losses. To set a stop loss you need to click on the particular trade, and choose Edit. Here you should find the Stop Loss option, where you can set it according to your preference.

This can either be a specific rate or a pips you choose. The stop loss settings can be changed any time as well as removed.

Should the market fall to your specified rate, and you lost a certain amount, the SL will be triggered and your position will be closed so that you will not lose anymore.

Under unnormal market conditions the SL is not guaranteed. So should the SL price vary a bit, the SL will be triggered at the next available price.

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