# Stop Loss (SL)

{% embed url="<https://www.youtube.com/watch?v=C2hWJfqgRsQ>" %}

{% hint style="warning" %}
Real Take Profit and Stop Loss orders cannot be set simultaneously in the SPOT market, If attempted, the system replaces the Stop order with a virtual one.
{% endhint %}

<figure><img src="https://554260309-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FeAkMGtCw51BYWLVdmuDx%2Fuploads%2FWf4obJiy1Va9eRHpsppu%2Fimage.png?alt=media&#x26;token=58669669-b816-43d7-b4bb-36c1cfaa4741" alt="" width="374"><figcaption></figcaption></figure>

Enabling SL module, will place a Stop Loss based on its settings when opening a position.

## 1. SL level, %

**Stop loss** will be placed with a % offset:

* **from position's break-even level.** When SL level reordering (#7) is disabled, the stop loss will be based on the price of the first executed order within the position.
* **from DCA order´s** average price.

For example, If the first executed order in a Long position was at 0.4 (including commissions), and a Stop Loss is set at **5%** from position price, then the Stop Loss order will be placed at 0.38.

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/a41e7428-2e35-490b-a754-24a887b088fc/image.png" alt=""><figcaption></figcaption></figure>

## 2. Specific Stop Loss price

Absolute Stop Loss value can be set using the keyboard numbers or arrows.

<figure><img src="https://554260309-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FeAkMGtCw51BYWLVdmuDx%2Fuploads%2F37d4SB2OdFcohWPURpkn%2Fimage.png?alt=media&#x26;token=a813a327-d71d-4652-b826-b881ce6e13ba" alt="" width="316"><figcaption></figcaption></figure>

Dragging the order on chart with your mouse is also possible.

<figure><img src="https://554260309-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FeAkMGtCw51BYWLVdmuDx%2Fuploads%2FjEcRRCcIKTFlYkItLgJP%2Fimage.png?alt=media&#x26;token=2ea3b677-4393-4f8d-80b6-682b6b8f2e1a" alt="" width="364"><figcaption></figcaption></figure>

## 3. Calculation method

### Fixed price

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/e1f3055c-f099-4ef2-8f43-432f43c3a47c/image.png" alt="" width="375"><figcaption></figcaption></figure>

At a given Stop Loss price (1), loss Amount (2) is calculated:

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/03f69f00-5713-44aa-822d-15095169c1f4/image.png" alt="" width="375"><figcaption></figcaption></figure>

or vice versa, for a given loss amount (1) the stop loss price (2) is calculated:

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/c17537c5-b340-4ffe-acb6-37c7229d7aaf/image.png" alt="" width="375"><figcaption></figcaption></figure>

### **Amount calculation**

<figure><img src="https://554260309-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FeAkMGtCw51BYWLVdmuDx%2Fuploads%2Fxp1ZrwFPNsGFDcC8ohGH%2Fimage.png?alt=media&#x26;token=16dc5123-3a17-48e3-8efe-748ea7355cb7" alt="" width="314"><figcaption></figcaption></figure>

Number of orders for position opening will be calculated

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set a Stop Loss based on a specified risk amount and price (% offset).

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/6fb7eccc-0f7a-4212-8234-686055e2340a/image.png" alt="" width="375"><figcaption></figcaption></figure>

{% hint style="warning" %}
Note: Automatic grid level updates do not recalculate token amount in orders.
{% endhint %}

## 4. Risk amount

Estimated loss in dollars when closing position at Stop Loss level.

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/f672d248-ca8a-4cb6-9a53-8f511aacc86d/image.png" alt="" width="375"><figcaption></figcaption></figure>

SL level is automatically filled in when % offset for Stop Loss is entered.&#x20;

By filling in this field, SL level is calculated to ensure that the specified risk equals the loss at Stop Loss.

## 5. Order Type

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/9af0fa2a-7a58-4ba8-964b-8a0c38ab0eef/image.png" alt="" width="375"><figcaption></figcaption></figure>

* [**Virtual Floating**](https://docs.finandy.com/trading/manual/order-types/floating-order) - limit order with auto-swaps. It is more profitable to exit in currencies with a wider spread.
* [**Virtual Market**](https://docs.finandy.com/trading/create-order-grid/order-types/market-order) - a virtual order that triggers a real order to execute bids from other market participants at market price.
* [**Stop Market** ](https://docs.finandy.com/trading/create-order-grid/order-types/stop-order)- is a type of exchange order that initiates a market order once the stop price is triggered\*.

{% hint style="warning" %}
\*Be aware of market liquidity and volatility when using market orders, as they can execute at a price that is higher/lower than the most recent visible.
{% endhint %}

## 6. Order trigger

Additional options for virtual orders.

<figure><img src="https://t24536365.p.clickup-attachments.com/t24536365/c628a949-cee9-4f8c-84a4-24fa63e12257/image.png" alt="" width="375"><figcaption></figcaption></figure>

Trigger for virtual stop loss to close position with a real order.

* **Current price**\
  If virtual order's trigger price crosses the currency pair price, a real order is created (step 5).
* **Order book**\
  Checks the sell limit price for a **Long** position and the buy limit price for a **Short** position. Protects against false price movements (squeezes).
* **1m candle, 3m candle etc.**\
  First value is candle's timeframe.\ <mark style="color:green;">**Long**</mark> position will be closed by Stop Loss if the trigger candle closes at or below the SL level.\ <mark style="color:red;">**Short**</mark> position will be closed by Stop Loss if the trigger candle closes at or above the SL level.

{% embed url="<https://www.youtube.com/watch?v=7PAu6nyirL8>" %}

## 7. Level Reordering

If enabled, **SL** adjusts automatically after averaging position price, maintaining the same offset from position´s price as before.

{% embed url="<https://www.youtube.com/watch?v=qgQp3CPjDik>" %}

**Do you have any questions? We can help you in our Telegram chat.**

{% embed url="<https://t.me/finandy>" %}