Control risk by capping losses
Stop Loss orders allow traders to set
an exit point for a losing trade. If you
are short a currency pair, the Stop
Loss order should be placed above
the current market price. If you are
long the currency pair, the Stop Loss
order should be placed below the
current market price. They help
traders control risk by capping
losses. Stop Loss orders are
counter-intuitive because you do not
want them to be hit, however, you will
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