A stop loss is an exit order that is used to limit the amount of loss that a trader will take on a trade, if the trade goes against them. For example, if a trader is in a long trade, they want the price to move upwards, so they will use a stop loss to exit the trade, if the price moves downwards too far.

The stop loss order is directly linked to the Leverage and Margin Requirements that an investor settle in each trade.

No matter the margin requirement is less using major leverage trade levels, the risk is more, because the guarantee reduces the spread between the Open price and Stop Loss price.

STOP LOSS LONG TRADE


EXAMPLE : LONG AAPL (APPLE INC)

Buy Price (in USD) 
$710.00
LEVERAGE 50:1 LEVERAGE 100:1 LEVERAGE 200:1
Margin Requirement = 2% of the Price (in USD)
 $  14.20
Margin Requirement = 1% of the Price (in USD)
 $    7.10
Margin Requirement = 0.5% of the Price (in USD)
 $    3.55
Stop Loss Price  = Buy Price – Margin Requirement (in USD)
 $695.80
Stop Loss Price  = Buy Price – Margin Requirement (in USD)
 $702.90
Stop Loss Price  = Buy Price – Margin Requirement (in USD)
 $706.45

STOP LOSS SHORT TRADE


EXAMPLE : SHORT AAPL (APPLE INC)
Buy Price (in USD)
 $710.00
LEVERAGE 50:1 LEVERAGE 100:1 LEVERAGE 200:1
Margin Requirement = 2% of the Price (in USD)
 $  14.20
Margin Requirement = 1% of the Price (in USD)
 $    7.10
Margin Requirement = 0.5% of the Price (in USD)
 $    3.55
Stop Loss Price  = Sell Price + Margin Requirement (in USD)
 $724.20
Stop Loss Price  = Sell Price + Margin Requirement (in USD)
 $717.10
Stop Loss Price  = Sell Price + Margin Requirement (in USD)
 $713.55

TALK TO US