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Forex trading is very unpredictable and susceptible to the ups and downs of money trading. Although it is the most profitable investment today, we have to protect forex money we invest in it. One protective tool is called stop loss orders.

Stop loss orders are limits we put on our invested money through our brokers. Stop loss makes sure our losses are capped in case of a sudden price fall. There are 3 types of stop loss orders that effectively protect forex money from losses. In summary, they are Good Till Canceled (GTC), a stop loss that continues until we cancel it; Day Order, which is good only for a day; and Trailing Stop, a stop loss with a stop price near the market price and never lowers than that.

Other forex tools to protect forex money can be in the form of Take-Profit, or what traders call T/P. They are also sometimes called limit orders. Like stop losses, they also turn into market orders to trade currencies automatically when the limit level is reached. Points or levels for T/P also abide by stop loss rules to protect forex money with.