There are two main types of risk when it comes to investing: market risk and specific risk. Market risk is the risk that comes with investing in the currency market in general. This is beyond a trader’s control. However, by diversifying your investments and a long-term investment strategy you can manage it.
Specific risk is the risk that is specific to a particular currency or investment. A stop-loss order is essential in managing this risk. The stop-loss order protects you from losses if the price of the currency falls and moves against you.
Read the complete article at How To Determine A Stop loss Level In Forex? Originally published on December 1, 2022.
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