There are two kinds of conditional order you can place with forex trades : the stop loss ( occasionally written stop / loss ) and the limit order.

Next, we’ll take at look at Wall Street Cloner. The stop loss is a well known order that controls the risk concerned in a trade. With a stop loss, you are saying to the broker, “If the price goes this far against me, I need out. ” So if you have acquired a currency pair hoping for a rise in price, but then the price falls, you will not see your entire account balance wiped out. The stop loss will kick in and protect the bulk of your funds. A limit order has similarities but is applicable to the opposite situation, the situation where you’ve got a winning trade. With a limit order, you are saying to the broker, “If the price reaches this level, that is’s enough, I may close there and take it. ” The limit order will be caused if your pre organized price is reached and the trade will be closed at that cost.

Many traders are disinclined to use limit orders when they first start out. It appears counter intuitive. If you do not place a limit order, when will you close the trade? How will you know when it has gone so far as it is going? If you wait too long, a unexpected reversal could see your profits wiped out.

So unless you have a system that’s set up with very precise standards to tell you when to close a trade, you will doubtless be better off if you use limit orders.