Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.
Lol, do you even know what youre saying? What do you mean by advantages and disadvantages of STOP LOSS? I dont know, for me, your question is kind of funny. What do you expect us to say as the disadvantage? That it stops you from earning bigger or what? Stop loss its just a way for you to prevent loss, thats it. If youre looking for something more than that, then Im sorry to say that youre wasting your time.
Not all exchanges support that uses a stop loss. Only biggest changes like binanace and few others off for the facility or stop loss. Those who are new in trading this is a very good thing for them to prevent himself from big loss.