Forex trading is a highly volatile market, and traders need to be aware of the risks involved. One of the most effective ways to manage risks is by using a stop loss order. A stop loss order is an order placed by a trader with a broker to sell a security when it reaches a specific price. In other words, it is a pre-determined exit point for a losing trade. In this article, we will discuss how to put in a stop loss order in Forex Trader Pro.
Step 1: Open a Trade
The first step in putting in a stop loss order is to open a trade. To do this, launch Forex Trader Pro and log in to your trading account. Once you are logged in, select the currency pair you want to trade and click on the ‘New Order’ button. This will bring up a window where you can enter the details of your trade.
Step 2: Enter the Trade Details
In the ‘New Order’ window, you will need to enter the trade details. This includes the currency pair you want to trade, the size of the trade, the type of order, and the stop loss level. The stop loss level is the price at which you want to exit the trade if it goes against you.
Step 3: Choose the Type of Order
There are two types of orders in Forex Trader Pro: market orders and limit orders. A market order is an order to buy or sell a security at the current market price. A limit order is an order to buy or sell a security at a specified price or better. To put in a stop loss order, you will need to choose the type of order you want to use.
Step 4: Set the Stop Loss Level
Once you have chosen the type of order, you will need to set the stop loss level. This is the price at which you want to exit the trade if it goes against you. To do this, click on the ‘Stop Loss’ field in the ‘New Order’ window and enter the price you want to use as your stop loss level. You can also use the ‘drag and drop’ feature to set the stop loss level on the chart.
Step 5: Submit the Order
Once you have entered all the trade details and set the stop loss level, you can submit the order. To do this, click on the ‘Buy’ or ‘Sell’ button in the ‘New Order’ window, depending on whether you are buying or selling the currency pair. This will submit the order to the market, and your stop loss order will be in place.
Conclusion
A stop loss order is an essential tool for managing risks in Forex trading. It is a pre-determined exit point for a losing trade and can help traders minimize losses. In Forex Trader Pro, putting in a stop loss order is a straightforward process. Traders need to open a trade, enter the trade details, choose the type of order, set the stop loss level, and submit the order. By following these steps, traders can effectively manage risks and improve their chances of success in the Forex market.
