Stop loss A stop loss is a tool available in most trading platforms

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For example, if you are a tourist from the US travelling to Canada with $1,000 and the exchange rate at the border is 1.3000, you will be given C$1,300. If when you return to the US and want to convert back the entire amount, and you find that the exchange rate has dropped to 1.2950, you will have $1,003. If you are a trader, this is a small profit.


For this reason, brokers allow traders to trade in lots. Typically, the palau business email list most common lot sizes are standard, mini, and micro which represents 100,000, 10,000, and 1,000 lots respectively. A bigger lot size will mean a higher profit if the trade goes right. If it goes wrong, the bigger lot size will mean more losses. Therefore, to reduce the risks, you would consider using a smaller lot sizes.


Stop loss A stop loss is a tool available in most trading platforms, including MetaTrader 4, MetaTrader 5, and cTrader. It is one of the most important risk management tools available because it stops a trade automatically when it reaches a predetermined level. As you become a better trader, you will realise that making losses is part of the business. As such, a stop loss will help you feel comfortable about the losses you make.