Thread: What is stop order?

An order that becomes a market order when a particular price level is reached and broken. A stop order is placed below the current market value of that currency.
Example: If you have an open buy JPY position, which you bought at 104.00 and you want to set a stop order in case JPY’s value starts to depreciate (to stop your loss). Since the JPY’s currency appreciates when the dealing rate moves from 104.00 closer to parity with the USD (102 JPY/1USD), a movement in the opposite direction would necessitate a stop order. For instance, you could set a stop order rate to sell JPY at 103.50, thus closing your position at a 50-pip loss.

The STOP order is set if your trade goes against you and you are making a loss. In this case you need to allow only a certain amount of loss, otherwise it could be huge.
So you need to put a "stop loss" order in, or, in short, this is called a STOP order. With a STOP order, you are resigned to your loss but you have put a very wise halt to it.

With a STOP order you can decide befo*****d how much you are prepared to lose, should the trade go against you. Just set the STOP at the required level.

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Stop loss or stop order as you might want to call it is basically a place where the trade closes automatically. If I am going somewhere and I have trade open and I fear that it might go too far against my order, so in that scenario, I am going to use stop order to make sure I don’t lose more than a certain amount which will make me feel comfortable.

I don’t use stop loss much because of OctaFX broker, it’s an worldwide recognized brokerage company with winning 11 awards in just 4 years, so it’s great to trade with me while not using stop loss is basically due to their lovely cTrader mobile platform which allows me to trade from anywhere, so I rather lose it myself then stop loss.