- Reviewed by James Stanley, Nov. 24, 2021
Market movements can be unpredictable, and the stop loss is one of the few mechanisms that traders have to protect against excessive losses in the forex market. Stop losses in forex come in different forms and methods of application. This article will outline these various forms including static stops and trailing stops, as well as highlighting the importance of stop losses in forex trading.
WHAT IS A STOP LOSS?
A forex stop loss is a fun