Risk Management Tools

Use our professional types of order tools to manage your trading risk:

Stop Loss
Take Profit
Entry Limit
Entry Stop

Stop Loss

A Stop Loss is used to limit a trader's losses if the market moves against their position. It’s a protective order that closes an open position (or future position) when a predetermined maximum loss threshold is reached.

The trader sets the maximum amount (in terms of pips) that he is willing to lose on a certain trade. When that specified price is reached, the trade is executed.

Take Profit

The opposite of a Stop Loss, a Take Profit (sometimes alternatively referred to as a Limit Order) is used to lock in the trader's profit if the market moves favorably.

The trader sets in advance the price at which he wants to close his position, and once that profit point is reached, the trade is executed.

Entry Limit

Entry Limits are orders that are placed by traders to enter the market at a more favorable price than the current price. When buying a currency pair or a CFD, an Entry Limit will be placed below the current market price. When selling, an order will be placed above the current market price.

When placing Entry Limit orders, the trader expects that the market price will bounce back after it reaches the level at which the entry limit order was placed.

For example:

If USD/CAD trades at 1.0547/1.0551 you might expect the pair to trend higher. But, maybe you prefer going long at a better price – and you expect the price to go down to 1.0525 before it continues going up. So, you place an Entry Limit buy order of 1 lot (5,000 USD/CAD) at 1.0525. When the rate reaches 1.0525, the limit order will be executed and 1 lot of USD/CAD will be bought at 1.0525.

Entry Stop

Entry Stop orders are orders placed by traders to enter the market at a less favorable price than the current price. A buy Entry Stop order is placed above the current market price. A sell Entry Stop order is placed below the current market price.

When placing Entry Stop orders, the trader expects that once the market's momentum breaks through the specified price, the trend's movement will be confirmed and continue in that direction.

For example:

If USD/CAD is trading at 1.0553/1.0557 and you estimate that USD/CAD will continue trending higher and that if the pair breaks above 1.0600, it will rise by at least 50 pips, then you would place your buy Entry Stop order of 20 lots (100,000) USD/CAD at 1.0600.

Trading CFDs carries risk and could result in the loss of your deposit, please trade wisely. Read full Risk Disclosure.