In CFDs, you speculate whether the market price will rise or fall, and from this, you may decide to go long or short on the underlying asset.
Either way, you may make a loss. A stop-loss order will help you minimize this risk. Whether you are new in this market or not, it is easy to place a stop-loss order.
One key advantage of placing a stop-loss order, especially the guaranteed stop-loss orders (GSLOs), is that this kind of order will occur automatically. You are, therefore, not compelled to stick to your screen to track your market positions.
Stop-loss orders will let you check your risks and minimize the possibility of you making huge losses that may occur unexpectedly.
They will also enable us to adhere to our trading plan with no worry that we will have to alter the position manually. Stop-loss orders are automatic.