Hedging risks and rewards

Forex trading is a risky business. This chapter will explain the usage of Stop Loss (SL) and Take Profit (TP) orders. These are used for hedging your risks and rewards, realizing your profits and minimizing your losses.

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Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.