Foreign Currency Trading Stop Loss Orders
A stop loss is an order that is sold automatically if the currency trading venture you invest in reaches a certain price, preventing more losses to occur. When you place a stop order, you need to set an exit point, to happen if the trade losses a specific value. The stop order is basically what it sounds like, it stops your losses and lowers your risks, so even if the trading in foreign currency fails to make a profit, your investment is relatively safe.
When both the currency trading stop loss and limit orders are made, you need to place an OCO(order cancel order), in order to cancel the stop loss if the limit order is reached or vice versa.
You should take the time and learn about placing currency trading stop orders, so you can make the orders correctly and not make mistakes in the trade.
Posted by Paul Sander