A stop-loss order is a predefined price level at which a trade is automatically closed to limit losses. For instance, if you buy EUR/USD at 1.1000, you might set a stop-loss at 1.0950 to cap your loss at 50 pips.
Stop-loss orders are crucial because they help traders avoid emotional decision-making and protect their capital during unexpected market movements. Using them is a cornerstone of effective risk management.
Stop-loss orders are crucial because they help traders avoid emotional decision-making and protect their capital during unexpected market movements. Using them is a cornerstone of effective risk management.
