easyMarkets gives you access to Stop Loss, which is free and a standard feature on easyMarkets Proprietary Platform and Apps. It's also guaranteed, which means the level or rate you set is guaranteed to be met and will close your trade if the market moves against you. This protects you against unintended losses or sets a limit to the maximum risk you are exposed to when trading.
A key component of an effective trading strategy – is risk management. Stop Loss is one of the most popular trading tools used to stop runaway losses. Although many brokers offer this tool, not all stop losses are created equal: easyMarkets not only offers stop loss at no additional cost to you, it also guarantees your order will be met when the rate is reached.
This is an important advantage; if stop loss is not guaranteed, this means that slippage can cause unforeseen losses, with the risk increasing exponentially when markets are volatile. But with easyMarkets, your stop loss will be executed at exactly the rate you set – giving you peace of mind when trading.
The currency market is volatile due to a multitude of factors. These fluctuations present you with many opportunities, and of course pitfalls. On the other hand, fluctuations may result in a loss if you take a position on the wrong side of a market movement. In the absence of a crystal ball, none of us is 100% certain about which way the market will move. Given the risk of a currency pair moving in the opposite direction to what we had hoped or predicted, it’s important to have a way of limiting the loss. Here’s where stop loss comes into the picture.
Factors that influence the forex market, moving currency prices in one direction or the other, include:
The simplest way of setting stop loss orders is at a static price. So, the price that you have set for a position does not change until the trade hits either the stop or limit price (the maximum price that you may have set). This is the most popular form of Stop Loss due to its simplicity.
While there’s no “right” price or rule of thumb for setting a stop loss, here are a couple of approaches that may be kept in mind. If you’re a day trader, you may check the currency pair’s daily price range, and set your stop loss outside the range. In case the market suddenly breaks the trend and moves too far in the losing direction, your position will get automatically closed with the stop loss order coming into effect. On the other hand, swing traders may set their stop loss much farther, even double of the average daily price range.
At the end of the day, it’s knowledge, practice and analysis that help you make the most of stop losses when trading in this massive, dynamic market.
When you open your trade, the platform automatically calculates the stop loss based on your amount to risk.
To modify your stop loss rate, go to My Open Trades and click the ‘modify’ button
From here you can modify your stop loss and enter a take profit rate.