Dear community members,
Stop loss
With stop loss, you minimise potential losses by setting the price at which you want the position to close, in case the market moves against you.
When the current market price surpasses this level, your trade will be closed automatically.
Stop loss with Crash/Boom/Range break indices
Stop loss works slightly differently in Crash/Boom/Range break indices. This is because sudden fluctuations in market price from one tick to the next can sometimes surpass the stop loss you have set. When the market price exceeds your stop loss amount, your contract will be automatically closed at that point, instead of exactly at the stop loss level.
For example, you predict that the market will go up, and buy a contract on Crash 500 index at 8,000 USD.
When the market price climbs to 8,700 USD, you decide to set the stop loss level at 8,200 USD. After a few ticks, the price dives to 8,100 USD, surpassing your stop loss level. Your trade will automatically close at 8,100 USD.
Stop out
With stop out, if your margin level drops below Deriv’s stop out level, your positions may be closed automatically to protect you from further losses.
Your margin level is the ratio of your equity (the total balance you would have if you close all your positions at that point) to your currently used margin.
For example, if you close your position at a certain point, your equity is the total of your account balance plus the profit or loss at that point. If the ration of this to your currently used margin is lower than Deriv’s stop out level, stop out may be applied.
Hope the above is useful for your trading activities!
If you have any questions, please visit our Help Centre or contact us via Live Chat and WhatsApp.