#RiskManagementMastery

STOP LOSS VS HEDGE ORDER

They are created the same in purpose but in a different effect to users, first let us discuss the stop loss usage .

1.)STOP LOSS- is a sell order that is set by a trader to protect his remaining capital .if the price hits the stop loss order automatically the trading position is dead.but the remaining capital is safe .

2.) HEDGE -usage of hedge is also to stop your losses , but your position is not dead it will continue to run until you close your hedge position .you have a chance to recover your losses.

I hope this will be informative to newbies

#trade safely