Stop Loss Order – the basic tool for traders

Stop Loss Order: Learning and implementing risk management in Tradersclub24

The Stop Loss Order is an everyday basic tool for any reputable trader. Above all, it is an important tool in risk management. With it, a trader can hedge profits earned and limit losses. It is a tool that will constantly meet you in our training and in our live trading rooms. Adequate control and assessment of potential risk of loss are essential for lasting success. Take advantage of the 30-day free guest access and find out how the Stop Loss Order and many more trading instruments are used in daily live trading.

stop loss order

Stop Loss Order: Areas of application

The Stop Loss Order has essentially two defined areas of application. On the one hand, they can hedge profits already made and, on the other hand, potential losses can be minimized.

This is done through a relatively simple operation. You determine a price below the current quotation. This course you have designated is called a stop course. This stop rate marks the market price at which an automatic sales order is issued without you having to re-act.

achieve profits with the Stop Loss Order

So let’s assume that you are already in the profit zone with any value and you want to make sure that you can realize some of these profits even in case the market develops against your position.

In this case, set the stop price in an area below the current price, which is still in your profit zone. If, on the other hand, you want to hedge your trade against losses from the beginning, you can clearly define the maximum acceptable loss at the beginning of your trade with the help of the stop rate, the maximum acceptable loss for you at the beginning of your trade and thus counteract a greater loss.

stop loss order

Safety through targeted use of the Stop Loss Order

Now that you have learned very shortly what a Stop Loss Order is and what options you can offer you as a trader, the question remains how to use it correctly. When and where should you secure your trade with a Stop Loss Order? Exactly these and many other questions of our members we answer as part of our Pro Training course.

We provide you with strategies and assistance for sound risk management, which you can put into practice in your own trades. In our live trading rooms, we also offer you full transparency and discussion possibilities. You can watch our experts put the theoretical aspects from our trainings live on the market into practice. So you can easily convince yourself of the potential of our approaches.

Stop course: important hints

It is important to mention at this point that the stop course is by no means a form of course guarantee. In particularly volatile markets or in the event of a slump in market liquidity, it is quite possible that your order will be executed at a lower price than the one you specified.

However, this danger lies primarily in less liquid values and lurks mainly in the stock market. The CFD and Forex market in which we operate with the TradersClub24 has enormous liquidity. Therefore, we usually act at the appropriate stop rate. Look over the digital shoulder and learn the trading from the experts without obligation when trading!

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