Stop-loss in Forex
A clear definition of Stop-loss, with practical context for reading markets and making better trading decisions.
Definition
A pre-planned exit that limits loss if the trade idea is wrong. It is a risk-control tool, not proof that a trade cannot lose more during a gap.
Practical forex example
If your long entry is 1.1000 and the idea fails below 1.0970, a stop-loss can define that exit.
Why Stop-loss matters
Understanding Stop-loss helps traders interpret market information, plan decisions, and manage risk with more context.
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