what is stop loss?

A Stop Loss (SL) is a risk management tool which aims to add protection to your investment. 

It is an instruction to close a trade at a specific rate, if the price is going against you, to prevent additional losses. If the market reaches your requested rate and you have lost the predetermined amount, the Stop Loss will trigger and automatically close your position.

A Stop Loss is mandatory on every position with the exception of non-leveraged BUY positions.

You can set your Stop Loss according to a specific rate in the market, or as a monetary amount. The default Stop Loss on most trades is 50% of the position amount. In other words, if the value of your position drops to 50% of the amount invested, the Stop Loss will trigger and the position will close automatically.

You can adjust the Stop Loss at any time while the trade is open.

Under normal market conditions, the set Stop Loss is not guaranteed. When the market is volatile, the Stop Loss rate you requested may not be traded in the market. In this case, the Stop Loss will trigger at the next available rate. The result is that you could lose more than you were prepared to on the trade. We do not compensate for these instances as we do not interfere with market conditions or events.

The maximum Stop Loss permitted when you open a position is 50% of the position amount (with the exception of non-leveraged BUY positions). This limit mitigates the possible risk to your capital in case of sharp movements in the market. It is possible to extend your Stop Loss beyond this limit once the trade is open.

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IMPORTANT NOTICE: CFD’s are very complex instruments and come with a high risk of losing money due to leverage. It’s been proven that nearly 80% of all investors loose money when trading the CFD’s. You should wisely consider your understanding of CFDs and how they work and if you are willing to take the high risk of losing your funds. Please consider seeking a professional advice from an independent and licensed financial advisor to ensure that you have the relevant experience, knowledge and the risk taking appetite that suits you for trading. Monyxa shall have any liability under no circumstances to any person or entity for any kind of loss or damage resulting from, caused by or related to any CFD’s or any other trading transactions done at our platform. Most importantly, do not invest the capital that you cannot afford to loose. There are risks associated with on-line trading systems including, but not limited to, software and hardware failure, and Internet disconnection. Monyxa shall not be responsible under any circumstances  for communication failures, distortions or delays when trading via the Internet.

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