// TRADING TERMINOLOGY

What is Stop Loss?

An order placed with a broker to sell (or buy) an asset when it reaches a certain price, to limit losses.

In-Depth Explanation

The most important tool for risk management. A stop loss automatically closes your trade at a pre-defined level if the market moves against you.

"You buy at 1.2500 and set a stop loss at 1.2480 to ensure you only lose 20 pips if the trade fails."

An order placed to close a profitable trade once it reaches a specific price target.

The difference between the expected price of a trade and the price at which the trade is actually executed.

A premium stop loss order that guarantees your trade will be closed at your exact price, regardless of market gaps or slippage.

A measure used by traders to compare the potential profit of a trade to its potential loss.

Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.

Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.

A stop-loss is your insurance policy. Learn how to place stops based on market structure rather than random numbers.

Knowing the terms is just the start. Learning how to apply them is where the edge is found.