Categories
Popular Questions

How to keep stoploss active in forex?

Forex trading is a popular and lucrative investment option that allows traders to buy and sell currencies in order to make a profit. However, like any other investment, forex trading involves a certain level of risk. To minimize the risk of losing money, traders use a stop-loss order. A stop-loss order is an instruction given to a broker to sell a security when it reaches a certain price. This article will explain how to keep the stop-loss order active in forex.

What is a stop-loss order?

A stop-loss order is a risk management tool used by traders to minimize losses. It is an order placed with a broker to buy or sell a security when it reaches a specific price. The purpose of a stop-loss order is to limit the amount of money that a trader can lose on a particular trade. For example, if a trader buys a currency pair at 1.2000 and sets a stop-loss order at 1.1900, the trade will automatically close if the price falls to 1.1900, limiting the loss to 100 pips.

600x600

How to set a stop-loss order?

Setting a stop-loss order is a simple process. Most forex trading platforms have a built-in stop-loss order feature that allows traders to set a stop-loss order when they open a trade. Here are the steps to set a stop-loss order:

Step 1: Choose a currency pair and open a trade.

Step 2: Select the trade in the trading platform.

Step 3: Click on the “Stop-Loss” button.

Step 4: Enter the stop-loss price.

Step 5: Click on the “Submit” button.

Once the stop-loss order is set, it will remain active until the trade is closed or the stop-loss order is canceled.

How to keep the stop-loss order active?

To keep the stop-loss order active, traders need to ensure that their trading platform is connected to the internet and that their computer or device is turned on. If the trading platform is closed or the device is turned off, the stop-loss order will not be active, and the trade may be exposed to additional risk.

Traders can also use a VPS (Virtual Private Server) to keep their stop-loss order active. A VPS is a remote server that runs 24/7, allowing traders to access their trading platform from anywhere in the world. By using a VPS, traders can ensure that their stop-loss order is always active, even if their computer or device is turned off.

Another way to keep the stop-loss order active is to monitor the trade regularly. Traders should check the trade from time to time to ensure that the stop-loss order is working properly. If the price is moving against the trade, traders should adjust the stop-loss order to limit the potential loss.

Conclusion

A stop-loss order is a vital tool for forex traders to limit their potential losses. Setting a stop-loss order is a simple process, and most trading platforms have a built-in stop-loss order feature. To keep the stop-loss order active, traders need to ensure that their trading platform is connected to the internet, their device is turned on, or they use a VPS. Traders should also monitor their trades regularly to ensure that the stop-loss order is working properly. By following these steps, traders can effectively manage their risk and increase their chances of success in forex trading.

970x250

Leave a Reply

Your email address will not be published. Required fields are marked *