1.
Stop Losses in Forex Trading

2.
Index
1. Stop Losses in Forex Trading
2. Types of Stop-loss

3.
Stop Losses in Forex Trading
 The Stop Losses function is a valuable tool to
safeguard the value of foreign currency
trades.
 It is especially true when the price of the forex
pair starts to move into negative territory.
 You simply set the stop-loss level, which
determines the most you can lose on position
if the price moves against you.

4.
 You should bear in mind that the stop-losses
can work for you or against you in the online
trading.
 While they protect against sudden movements
in the price, they can result in fear based
trading which is equally detrimental.

5.
 If you decide to maintain the narrow stop-losses
and collect on winning trades too early, this will
result in the incremental wins and losses.
 And there will be a loss of overall trading activity.

6.
Types of Stop-Loss
 If you are wondering how stop-loss can help
you while you are trading, it is a good idea to
understand the several different stop-loss
tools and techniques.
1. Average True Range
 This stop-loss technique is used in many
charting packages, and it factors volatility into
the price of tradable instruments.

7.
2. Trailing Stop
 It is possible to secure your profit while
limiting your risk, by using a trailing stop.
 It is a special type of stop-loss adjusts your
stop level automatically when your position
runs into profit, to lock in your gains.

8.
 As the price of the tradable instrument rises, so
too does the stop-loss.
 But when the price falls beyond the stop levels
your position is closed automatically as with a
normal stop loss.

9.
3. Guaranteed Stops
 This stop-loss allows you to limit the risk on
trades even when market gaps occur.
 A Guaranteed Stop always represents the
maximum that you can lose on a position, and
there is a small premium for the absolute risk
protection.

10.
Thank You