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What are the buy stop loss and sell stop loss on the foreign exchange trading software MT4?
In foreign exchange, we all encounter two keywords: buy stop loss and sell stop loss in MT4 trading. Buy stop loss means that investors believe that the future market will rise, but they are uncertain, so they can buy after judging to break through the pressure level, so they set a buy stop loss order to buy above the market price.
The sell stop loss refers to the prediction that the future price will fall, so set the sell stop loss order in advance. Generally speaking, if you set the buy stop loss on MT4, hang the sell order below the current price.
What is the stop loss order in foreign exchange trading?
The stop loss order in foreign exchange refers to that when the market price reaches the set value, the stop loss order will be triggered by the market order. When the purchase price reaches the set value, the purchase stop loss order will be triggered by the market order; When the selling price reaches the set value, the selling stop loss order will be triggered by the market order.
When the market has enough liquidity, both stop loss orders will trade at the optimal market price. Therefore, stop loss orders, also known as limit loss orders, are usually used as a measure to prevent the risk of price decline.
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