What is Stop Loss?

Stop Loss:

Stop Loss means limiting your loss or limitation of loss. In most of the cases, the stop loss limit does not exceed 10% of the margin for each order. If the company is for novices, the limit may be as high as 15-20%. Therefore, the main task of the order is to reduce the loss of the trader.

Although stop loss has many advantages, many experts do not use it. The reason for this uncertainty is the debate about possible losses. Some experts believe that all deposits of traders can be absorbed through stop loss. Others believe that if there is no stop loss, the trend usually does not expand, and the price will "kill" these deposits. It is worth noting that if you wait until the price returns to the previous level, you can avoid these losses first. The results of the views and transactions are different.

In any case, we cannot reject any point of view. You can work with Stop Loss or not. But in most cases, stop loss sales make sense. To prove this, we can say that this is a very popular amount for experienced traders. In most cases, the success of a transaction depends on the size of the trading instrument. You can set a limit of 10 points or lose all the margin, or part of the deposit. Or you can place an order at the 150-200 level. You must consider whether the stop-loss depends on the number of deposits and the chosen share.