Stop Loss

Once a trade is opened, a "stop loss" is set at a particular price so that if the trade goes the wrong way, you will only lose a set and pre-determined amount of money.

ATM requires that all orders and trades have a stop loss set, whether orders are being placed manually or automatically. As such, trading systems that do not have anything for the Initial Stop Loss settings will not place any orders.

Because this is automated trading software, and because it's designed so that you can kick it off and go and do other things, it's best that some emergency checks and balances are in place. Should ATM place a trade without a stop loss, and then your Internet connection went down for whatever reason, now your entire account balance is at risk with that trade not being managed by anybody or any thing. And you don't even know what's happening because you're at the beach drinking beers.

And so a stop loss mandatory. However, there is nothing stopping you from putting that stop loss ridiculously far away from the current price - so far away that it's essentially the same as not having a stop loss. This is not recommended, but you can if you want.

See also::

• take profit