eToro – Forex Trading Forum

[Marcus1988]

Why do we have to have the stop-loss feature? im new to this game and fair enough i understand it stops you from loosing all your money in a trade that goes wrong, but without the stoploss you could just wait until the currency you were trying to trade went back to were you wanted it to be, then trade.. it might take loads longer but at least you dont loose your money, go on tell me im a complete idiot... :P

[pousoulas]

when you make a trade, it means that you buy forex.
so, when a trade is open, as you wait for your money to cost more (and close and take profit), there is also the possibility, the money to cost less (when you are on -% gain).
so, if you ve put 50$ on a trade and you have profit -50 (you have also the spread but let it out as it is an example) means that you lost all your money right?
but if you expect that your trade will gain in the future, you put more money (because they worth less) to keep the trade open.

so the stop loss limit does this: customizes the amount (which is also translated to a price, e.g. 1,2725) that you can give to your trade as it looses it s cost. it s the limit of the amount you risk, to "resist" to the market's ups or downs.

[igorrrr]

Why do we have to have the stop-loss feature? im new to this game and fair enough i understand it stops you from loosing all your money in a trade that goes wrong, but without the stoploss you could just wait until the currency you were trying to trade went back to were you wanted it to be, then trade.. it might take loads longer but at least you dont loose your money, go on tell me im a complete idiot... :P

You are a complete idiot...and that's the understatement of the century.
If you don't use stop-loss your trade might turn into a bottomless pit,
you might lose $10,000 after risking only $200.
You say you want to wait until the trend changes,
but what if it doesn't change for a month? how long will you be able to hold the position open?