Trading is risky, everyone knows that. For you to keep your investments safe, A1 Capitals shares several tips on risk management:
Set Stop Loss and Stop Limit Orders
These are the levels when your positions should automatically close to either keep your profit safe or not lose more money. You can set them when opening a new position or editing the existing one. Also, there is an opportunity to tune-up their levels or remove these orders for active positions.
This order limits your potential losses on the market without slippages. It can be applied not to all trading instruments, however, if you find a checkbox with it after selecting Stop Loss, you can turn it on. Unlike the orders from point 1, Guaranteed Stop can be added only to new and pending positions. You can’t add it to the already existing positions. Once it is activated, you have no chance to remove it. What’s more, there is an additional spread charge for adding this order. You can see it before approval. Keep in mind that it is non-refundable.
The Trailing Stop order locks in the profits. It acts as an adjustable Stop Loss order and closes the position automatically when the price changes not in your favor. The amount of pips you should specify manually while setting this order. The main disadvantage of it is that there may be slippage, still, it is free to use and very helpful to secure the investments.
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