Video: How Does Stop Loss and Take Profit Work in Forex
Investing in assets such as stocks, bonds, cryptocurrencies, futures, options, and CFDs involves considerable risks. CFDs are especially risky with 74-89% of retail accounts losing money due to high leverage and complexity. Cryptocurrencies and options exhibit extreme volatility, while futures can also lead to significant losses. Even stocks and bonds can depreciate quickly during market downturns, and total loss can ensure if the issuing company fails. Furthermore, the stability of your broker matters; in case of bankruptcy, the presence of an effective investor compensation scheme is crucial for protecting your assets. It's vital to align these investments with your financial goals and if needed, consult with financial professionals to navigate complex financial markets.
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Last updated: 24/07/2020
The two main Forex pending order types, the take profit and the stop loss order. While the first one can be used (or not at all) without any limitations, the second one should always be present every time you open a trading position. The simple reason for this statment? Protect your account capital from unexpected surprises in this extremely volatile market.
Part of our multimedia library, learn in this video how does stop loss and take profit orders work in Forex and how to use them in your trading strategy.
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