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Using Stop Loss Orders in Forex Trading
Market movements can be unpredictable, and the stop loss is one of the few mechanisms that traders have to protect against excessive losses in the forex market. Stop losses in forex come in different forms and methods of application. This article will outline these various forms including static stops and trailing stops, as well as highlighting the importance of stop losses in forex trading. A forex stop loss is a function offered by brokers to limit losses in volatile markets moving in a contrary direction to the initial trade. This function is implemented by setting a stop loss level, a specified amount of pips ... (full story)