Hello Deriv Community,
With stop-loss, you minimize 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. The Stop Loss will be triggered at the next available price when the market touches the Stop loss or the Take profit.
You may refer to our Terms and Conditions describing these orders’ execution as well (refer below);
Clause 2.2.1 of section E (Orders- Type of Orders) :
In the case of a Stop Order, the client acknowledges that the Company will endeavor to fill the Order at a price equal to the one the client specified. However, if the specified price is unavailable, a less favorable price may be quoted. In other words, the Order is executed at a price equal to the specified one or worse than that (slippage). The execution of Stop Orders is guaranteed.
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 ratio of this to your currently used margin is lower than Deriv’s stop-out level, a stop-out may be applied.
If you have any questions, please visit our Help Centre or contact us via Live Chat and WhatsApp.