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How Stop Loss works in Forex

Learn how Stop Loss works and how to set, edit, or remove it for your Forex trades.

Written by Maya

Stop Loss is a tool for managing when a Forex trade closes based on a loss level you select.

🛡️ What is Stop Loss?

Stop Loss (SL) is a feature that lets you set a loss level for automatically closing a Forex trade.

It can be configured before a Pending Order is executed or managed while a trade is open.

⚙️ How does Stop Loss work?

When you set a Stop Loss, you select the level that triggers the automatic closure of your trade.

Once the Stop Loss level is reached, the platform initiates the trade closure. The trade closes at the current market price.

During periods of market volatility, the actual execution price may differ from the Stop Loss level you selected. This difference is known as slippage.

💡 Good to know: Stop Loss must be set within the range allowed by the platform for the current trade.

📍 How to set Stop Loss

You can set Stop Loss before a Pending Order is executed or configure it after your Forex trade is already open.

  • ⏳ Before the trade opens

To set Stop Loss before a Forex trade opens, you need to create a Pending Order.

  1. Create a Pending Order for your Forex trade.

  2. Open the order editor.

  3. Configure the Stop Loss (SL) level.

  4. Review your order settings and place the Pending Order.

If the Pending Order is executed, the trade opens with the Stop Loss you configured.

  • 📈 After the trade opens

You can also set or adjust Stop Loss for an active Forex trade.

  1. Open your active Forex trade.

  2. Locate the Stop Loss (SL) level on the chart.

  3. Set or adjust the Stop Loss to your preferred value.

  4. Review the updated level.

📌 Note: Stop Loss must be configured at a certain distance from the current market price.

🔄 How to edit or remove Stop Loss

To edit Stop Loss

  1. Open Trades and select the Forex tab.

  2. Find your trade under Open Positions.

  3. Select the current SL value.

  4. Choose how you want to set your Stop Loss: Amount, Percent, or Price.

  5. Enter the new Stop Loss value.

  6. Select Confirm to save the change.

Your updated Stop Loss will appear in your open trade details.

To remove Stop Loss

  1. Open Trades and select the Forex tab.

  2. Find your trade under Open Positions.

  3. Select the current SL value.

  4. In the Take Profit and Stop Loss window, clear the Stop Loss value.

  5. Select Confirm.

Your trade will remain open without the manually configured Stop Loss.

📍 Note: Stop Loss values must stay within the range allowed by the platform for the current trade.

🎯 What happens when Stop Loss is reached?

Once the Stop Loss level is reached, the platform initiates the trade closure. The trade closes at the current market price.

During periods of market volatility, the actual execution price may differ from the Stop Loss level you selected. This difference is known as slippage.

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