Stop Loss: Use a safety net to keep losses in check
Accepting that you are going to make a loss when you are trading is something that you will quickly become accustomed to as you know you are not going to win with every bet or trade that you make.
But, while you will accept the occasional loss, you do not want the cost of that loss to eat a sizable chunk out of your hard-earned profits.
The best way to keep losses in check, and to as small amount as possible, is to use the Stop Loss function which is available on trading apps.
By using the Stop Loss facility, you can put a limit on how much you are prepared to lose from any trade.
This can be an especially useful tool to take advantage of in a more volatile market when there could be a lot of movement in price. You do not want to be caught out if the market turns against you, so using the Stop Loss function will reduce the risk of losing lots of money.
There are different settings you can select to determine how to apply the Stop Loss option on your betting app.
It is largely based on ticks. So you could set it to stop taking bets if the price changes by a certain number of ticks.
You can also set your Stop Loss level at a specific amount of money. Perhaps you only want to risk losing £10 or £20 on a market. You can tailor your level to suit your requirements.
Some betting apps also offer the ability to specify a percentage that you are prepared to lose.
Stop Loss can be used on its own, but it is also often used in conjunction with Tick Offset. In this instance, whichever situation occurs first – either Stop Loss or Tick Offset – then that will cancel the other.
It is similar to when you are financial trading. You will select the Stop Loss on how much you want to risk losing and a minimum level is often shown. You will also then have the option of setting a Limit Order. This is when you also set a profit amount which you want to take. So your trading will cease when a profit target has been reached, rather than you risk losing what you have made if the market has turned against you.
And that is what Stop Loss is there for. If you are in a losing position in a market, you can at least limit the severity of that loss.
