Stop loss is the most important type of order in trading.
This tutorial will cover what a Stop Loss Order is, how it can be implemented, and answer any frequently asked questions.
You’ll learn everything you need about stopping loss after you have read this tutorial.
What is a Stop Loss Order (or Stop Loss Order)?
All the trading platforms I’ve seen offer a stop loss option.
Although some may be more difficult to use than others they all serve the same purpose.
A stop loss order allows traders to limit their losses in a losing trade and lock in their profits on winning trades.
More precisely, a stop-loss is a pending order that can only be executed if the price exceeds your stop loss limit.
A pending orphan order is one that remains on the broker’s server indefinitely until the conditions are met. The price must reach the stop-loss price in the case of a Stop Loss order.
Once the price reaches the stop loss price, it transforms into a market or, meaning that the trade will be executed at the next opportunity.
This means there must be someone on the market willing to take your side.
In large liquid markets, trades are usually filled quickly and at a very high rate of…