What Is A Stop-Loss?
A stop-loss is an order to sell a security at a specified amount to manage loss.
When a trader wants to limit potential loss on a trade, a stop-loss order is placed to exit a position automatically at a specified price, defined by the trader. Stop-loss orders are designed to eliminate human emotions from trading. With a stop-loss order in place, the desire to hold on to losses is diminished.
Senior Market Specialist
Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…