What is Stop Loss?

A Stop Loss (SL) is a risk management tool that aims to add protection to your investment and prevent additional losses. 

 

A Stop Loss is an instruction to close a trade at a specific rate or amount. If the market reaches your requested rate and you have lost the predetermined amount, the Stop Loss will trigger and automatically close your position.

 

SL is mandatory on every position with the exception of non-leveraged BUY positions.

 

Under normal market conditions, the set Stop Loss is not guaranteed. 

 

Watch our video on the TBanque Academy to find out more: