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Stop Loss

A stop loss is a predefined exit instruction intended to reduce or close a position when the market reaches conditions that invalidate the trader's planned risk level. The actual execution depends on the order type and market conditions.

Why it matters to you

A stop loss allows the trader to decide in advance how far a trade should be allowed to move against them. It is fundamentally different from liquidation. A stop is part of the trader's risk plan. Liquidation is part of the platform's risk system. Stops can also experience slippage or fail to execute as expected depending on the order type and market conditions.

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