🛑 What is a Stop Loss?

A Stop Loss (SL) is an order placed to automatically close a trade when the market moves against you, helping to limit potential losses.

🔎 How does a Stop Loss work?

When you open a trade, you can set a price level where:

• If the market reaches that level,

• Your position will be closed automatically.

This helps control risk and prevents losses from increasing beyond your chosen limit.

📊 Example

If you buy EUR/USD at 1.1000 and set a Stop Loss at 1.0950:

• If the price drops to 1.0950,

• The trade will close automatically,

• Limiting your loss to that level (subject to market conditions).

  
  

📌 Important Notes

• Stop Loss does not guarantee exact execution price during high volatility (slippage may occur).

• It is a key tool in risk management.

• You can modify or remove your Stop Loss while the trade is open.

  
  

⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading involves risk.