What does forex stop loss mean

Stop loss is when the loss of an investment reaches a predetermined amount, in time to cut out, to avoid the formation of a larger loss.

The idea is to limit losses to a small range if an investment goes wrong.

An important difference between stock investing and gambling is that the former can limit losses to a certain range by stopping losses, while at the same time maximizing successful returns. In other words, stopping losses makes it possible to gain a large profit at a small cost.

In short, the fact that a stop loss makes it possible to make a big profit for a small price shows that an unexpected investment mistake can be fatal, but a stop loss can help investors save the day.