What is a stop-loss order in CFD trading?

[Myles]

 

[Brandon]

Hello Myles,
A stop-loss order acts as an insurance policy, and they help to control risks that may occur when you place a certain trading technique.
It is typically an uncertain order that starts to operate after the price of a particular asset progresses to a given extent.
When you decide to go long in CFD trading, your aim is to benefit from a price increase. In such a situation, what triggers a stop loss is a fall in price.
In case you decide to go short so that you can benefit from a fall in price, which may activate a stop loss is an increase in price.
If a certain trade obstructs you, a stop-loss order will stop you from losing your profits all at once.
Always remember that a stop-loss order depends on the offer and the selling prices of the underlying asset.