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Stop Loss Usage Requirements for Trades

A Stop-Loss order is a valuable risk management tool designed to limit potential losses by automatically closing a trade when the price reaches a predetermined level.

On Hola Prime (Sim. Funded) Account or Direct Account, the risk per trade idea should not exceed 2% of the initial account balance. Therefore, traders are required to define this risk by placing a stop loss within 3 minutes of opening a position or prior to closing the position, whichever occurs earlier.

Traders who implement stop losses tend to achieve greater long-term success compared to those who don’t. Therefore, we strongly recommend incorporating stop losses into your trading.