{"id":3474,"date":"2020-10-31T04:47:30","date_gmt":"2020-10-31T04:47:30","guid":{"rendered":"https:\/\/xtreamforex.com\/?p=3474"},"modified":"2020-11-11T08:21:17","modified_gmt":"2020-11-11T08:21:17","slug":"what-is-a-stop-loss-order","status":"publish","type":"post","link":"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/","title":{"rendered":"What is a Stop Loss Order?"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text el_class=”heading_text_area”]<\/p>\n

What is a Stop Loss Order?<\/strong><\/span><\/h5>\n

The Stop Loss is the order in which the amount of the loss that the trader may take on trade while exiting the order. Basically stop loss order is used to limit an investor\u2019s loss on a derivative that makes an unfavorable move. This is used to limit your risk on a trade, with an exit plan. If you set stop loss then you don\u2019t need to monitor your holding daily.<\/p>\n

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To give an example Lets buy EUR\/USD at 1.17551 here we set Stop Loss at price 1.17131. Now our order will execute when the price reaches 1.17131, thereby it will prevent further loss. If the price never goes below to 1.17131 then stop loss order will never execute.<\/p>\n

How to Place a Loss Loss Order<\/strong><\/span><\/h5>\n

Market Order<\/span><\/p>\n

Stop loss is usually known as the Market orders in which the price is available for the bid, ask, and the last price. In case if no one is willing to take the derivative at price 1.17131, then you could end with worse price than ever. This is called slippage however this is not an issue that occurs usually.<\/p>\n

[\/vc_column_text][vc_column_text]Limit Order<\/span><\/strong><\/p>\n

The other type of the stop-loss order is the stop-loss limit order. It is defined as the price in which the asset reaches the stop loss price; the limit order will be set by the broker to close the trade position at the stop-loss price. In this order type stop loss order type will either close at stop loss price or a better price than this. In this way you get rid of slippage but doesn\u2019t get you out of the market when price moving aggressively against you.<\/p>\n

[\/vc_column_text][vc_column_text]Trailing Stop Loss<\/span><\/strong><\/p>\n

The Trailing Stop will be adjusted to the trade\u2019s moves into the trader\u2019s favor in order to reduce the risk of the negative trade. Trailing stop loss is a type of trading that lets you set maximum value or percentage of amount occurs on a trade. It works only in case if prices fall or rise against you. This order limits the losses but doesn\u2019t limit if your position is in gain.<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

The Stop Loss is the order in which the amount of the loss that the trader may take on trade while exiting the order. <\/p>\n... continue reading<\/a>.","protected":false},"author":3,"featured_media":2311,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[75],"tags":[38,36,29,102,35,103,97],"yoast_head":"\r\nWhat is a Stop Loss Order - XtreamForex<\/title>\r\n<meta name=\"description\" content=\"The Stop Loss is the order in which the amount of the loss that the trader may take on trade while exiting the order.\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"What is a Stop Loss Order - XtreamForex\" \/>\r\n<meta property=\"og:description\" content=\"The Stop Loss is the order in which the amount of the loss that the trader may take on trade while exiting the order.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Xtream markets\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/xtreamforex.official\/\" \/>\r\n<meta property=\"article:published_time\" content=\"2020-10-31T04:47:30+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2020-11-11T08:21:17+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.xtrememarkets.com\/MU\/wp-content\/uploads\/2020\/07\/8july.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1700\" \/>\r\n\t<meta property=\"og:image:height\" content=\"378\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@xtreamforex\" \/>\r\n<meta name=\"twitter:site\" content=\"@xtreamforex\" \/>\r\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"2 minutes\">\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":[\"Organization\",\"Place\"],\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/#organization\",\"name\":\"Xtreamforex\",\"url\":\"https:\/\/www.xtrememarkets.com\/MU\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/xtreamforex.official\/\",\"https:\/\/www.instagram.com\/xtreamforex.official\/\",\"https:\/\/in.linkedin.com\/company\/xtream-forex\",\"https:\/\/www.youtube.com\/channel\/UCbbTuJV9XhurjZciRLdvFBg\",\"https:\/\/www.pinterest.com\/xtreamforex_trading\/\",\"https:\/\/twitter.com\/xtreamforex\"],\"logo\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/#local-main-organization-logo\"},\"image\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/#local-main-organization-logo\"},\"openingHoursSpecification\":[{\"@type\":\"OpeningHoursSpecification\",\"dayOfWeek\":[\"Monday\",\"Tuesday\",\"Wednesday\",\"Thursday\",\"Friday\",\"Saturday\",\"Sunday\"],\"opens\":\"09:00\",\"closes\":\"17:00\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/#website\",\"url\":\"https:\/\/www.xtrememarkets.com\/MU\/\",\"name\":\"Xtreamforex\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/www.xtrememarkets.com\/MU\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.xtrememarkets.com\/MU\/wp-content\/uploads\/2020\/07\/8july.jpg\",\"contentUrl\":\"https:\/\/www.xtrememarkets.com\/MU\/wp-content\/uploads\/2020\/07\/8july.jpg\",\"width\":1700,\"height\":378,\"caption\":\"Market Analysis\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/#webpage\",\"url\":\"https:\/\/www.xtrememarkets.com\/MU\/what-is-a-stop-loss-order\/\",\"name\":\"What is a Stop Loss Order - 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