MAX RISK TOLERANCE
Max Risk Tolerance defines the maximum acceptable risk level for an account, reflecting the investor's capacity and willingness to withstand losses. This is determined by the trader's Max Risk Percentage.
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Stop loss is an order placed with a broker to buy or sell an asset once it reaches a certain price, used to limit an investor's potential loss. In trading, stop loss orders are crucial for managing risk, especially in volatile markets. Traders use them to prevent significant losses by automatically closing a position when an asset’s price moves against them. A well-placed stop loss can protect profits, reduce emotional trading, and help maintain disciplined risk management strategies in both short-term and long-term trades.