A stop-loss to reduce the objective is related to open trade in order to avoid further losses if the price goes against you. Stop loss order remains in force until the position is liquidated or cancel the stop-loss order. For example, you go long (buy) EUR / USD at 1.2230. Limit its maximum loss that you have set stop loss order at 1.2200.
This means that if you were dead wrong and EUR / USD drops to 1.2200 instead of moving up, your business should be run automatically sell at 1.2200 and close your position to a 30 pip loss. Stop-loss is very useful if you do not want to sit in front of your monitor all day afraid of losing all their money. Just give the order to halt the loss of all open positions, so do not miss your basket weaving class.
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