The concept of stop – loss orders has become so popular at the last years on the global forex market. So, millions of traders are using that kind of orders as a part of trading strategy. Stop loss order is an order which is predicted to lose value in a specific time period for a position. Investor, that is being processed would fall to a level lower than the present value of the value of the asset believes that if a stop loss order will occur the level of loss. Pending orders occurred at the time when the prescribed conditions to behave as a market order that is defined as soon as the level of damage was reached, a Stop Loss order automatically closes the process.
The purpose of a stop is preventing losses and taking traders into the safe zone. When you're doing risk management of transactions on the market, thwarts undesirable consequences to face by using a stop loss order. At the last years, with the developing concept of risk management, the traders in the global forex market started to take precautions to protect themselves against unexpected conditions on the market. So, stop – loss orders are one of the most popular strategy of them. They are trying to escape from risk zones and trying to reduce the amount of possible loss. Finally, we can say if you want to reduce your risk concept, you have to follow stop – loss orders seriously.
- Date: 07 October 2016 Fri 00:39
- Last Added
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