When it comes to trading, one of the first things on a trader's mind should be money management. A solid strategy for managing risk and capital is crucial, and using a well-defined margin loss for your trades is one effective approach.
Many traders often believe that once they set a Stop Loss (or Take Profit), the broker will automatically close their position at that specific price. However, that’s not quite the whole story.
It really depends on the type of account you have with your broker. For those trading on ECN accounts, when you set a Stop Loss or Take Profit, the broker will close your position at the first available price once the market hits that limit. If you’ve ever noticed that some of your orders were closed at a different price than you set, you might be dealing with slippage.
Moreover, some traders think it’s better not to reveal their exact loss limit to the broker. This is where the concept of the Hidden Stop Loss comes into play. This innovative tool is designed specifically for those who want to keep their loss limits under wraps. Now, you can utilize both Hidden and Regular Stop Losses simultaneously.
Setting a Regular Stop Loss for your trades is as straightforward as ever, whether you’re using automated strategies or trading manually. Simply run this robot on a new chart (any chart will do) to manage all your positions effectively. The input value you set determines the distance between your Hidden and Regular Stop Losses, so keep in mind that this value is measured in points, not pips.
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