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Is loss limitation possible?

Yes, it is possible to settle each traded order in currency trading with a loss limit. The loss limit refers to the limit up to which the trader takes a risk of loss. Currencies are bought or sold up to a certain limit. If this corresponding limit is exceeded or not reached, the order will not be executed. This type of order with loss limitation is called a limit order. In particular, investors who do not have the opportunity to monitor their positions continuously throughout the day resort to this order option. This way they can safely execute their trading activities without constantly keeping an eye on the performance of their exchange rates. If, in the period between placing and executing the order, a price trend occurs that is disadvantageous for the investor, the possibility of loss is efficiently prevented by the order stop when the loss limit is reached. However, buying shares, for example, is by far not as risky as trading foreign exchange with leverage.

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Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading with financial products (CFDs, Forex, Stocks, Cryptocurrencies, etc.) in general and with leveraged products especially is highly speculative and not suitable for all investors! The loss of your entire investment is possible. Never invest money you can`t risk losing! Decentralized and not regulated cryptocurrency markets are also a high risk and may lead to a significant loss.

Disclaimer
Everything on this site should not be considered as financial or investment advice. This is only a website offering information, Startup.SX (SSX) is not a registered broker, advisor or analyst. Always do your own research, only you are responsible for your actions. What works for others doesn`t have to work for you.

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