What Is Stop Loss, and How Can I Set It?

Find out how Stop Loss can help you limit your potential losses when trading. 

🛑 What is a Stop Loss?

A stop-loss order is a pre-set order placed with a broker to close your trade when it reaches a certain price. The primary purpose of a stop-loss order is to limit an investor's loss on a position. It is an automatic trigger that helps to manage the risks associated with trading.

🔎 How Does Stop Loss Work?

A stop-loss order automatically triggers the sale of an instrument when its price falls to a predetermined level. This helps limit potential losses by ensuring it is sold before the price drops further. 

You can set the stop loss either when you open a new trade or by editing an existing one. 

Setting a Stop Loss on the WebTrader Platform

These are the steps for setting the Stop Loss for a new trade:

1. Click the Stop Loss box from the Open Trade pop-up window.
2. Pick from the Stop Loss options available:
   1. Price level – the price the instrument has to hit to trigger the Stop Loss.
   2. Currency (USD, EUR, etc) - the amount of money you are willing to lose on this trade.
   3. Pips – the amount you are willing to lose on this trade in terms of pips
3. Insert the Stop Loss value.
4. Place the order.

To add a Stop Loss to an existing order, you need to:

1. Go to the bottom of the WebTrader screen, where the open positions are listed
2. Click on the last box on the right, with the '+SL' text written inside
3. Insert the desired price level for the Stop Loss
4. Click the 'Save' button to apply the changes

Setting a Stop Loss on the CAPEX Mobile App

To add a Stop Loss on the mobile app, you need to:

1. From the New Order screen, tap the Stop Loss toggle switch
2. Pick from the Stop Loss options available:
   1. Price level – the price the instrument has to hit to trigger the Stop Loss.
   2. Currency (USD, EUR, etc) - the amount of money you are willing to lose on this trade.
   3. Pips – the amount you are willing to lose on this trade in terms of pips
   4. Percentage – the percentage of the total amount you are willing to lose
3. Insert the Stop Loss value.

To add a Stop Loss to an existing order on the mobile app, you need to:

1. Go to the 'Positions' tab
2. Swipe right to modify the desired position
3. Tap the Stop Loss toggle switch
4. Insert the Stop Loss value
5. Tap the 'Save Changes' button

Please note that closing rates can't be guaranteed during volatile or gapping markets. Losses indicated are an estimation based on current market conditions and do not take into consideration any charges.

🖊️ Can I modify a Stopp Loss once I've set it?

Yes, you can modify it. Just follow the steps explained above to reopen your trading window and edit the existing trade.

Can I remove a Stop Loss?

Yes, you can remove a Stop Loss. Just follow the steps explained above to reopen your trading window and remove the Stop Loss.  

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