🔴 Stop Orders 🔴
Stop orders are used to limit potential losses or lock in profits. There are two types:
Stop-Loss Orders: These are used to limit potential losses. If the market moves against you and reaches your specified stop-loss price, your broker will execute a market order to sell the asset, helping you minimize losses.
Take-Profit Orders: These are used to lock in profits. If the market moves in your favor and reaches your specified take-profit price, your broker will execute an order to sell the asset at a profit, ensuring you capture gains.
Each of these order types serves a unique purpose in managing risk and achieving your trading goals. It's essential to understand when and how to use them effectively to navigate the complexities of the financial markets.
