Stop Loss (S/L)

Stop Loss – A protective order attached to a position or pending order that closes the trade if price moves against the trader. For a long position it is a price below entry; for a short position a price above entry. MT4/MT5 treat S/L as a stop order that automatically closes the position at market when hit. Investopedia defines a stop-loss as an order to limit losses by closing at a specified price.

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