FAQs

What is a ‘Stop Loss Order’ and How is it Calculated?

last update: August 23, 2026

A stop-loss order (SL) is a risk management tool that automatically closes a trade when the price reaches a certain level in order to limit potential losses.

Note: There is no mandatory Stop Loss requirement for any of The5ers programs, including Bootcamp. You can trade without setting a Stop Loss.
However, we strongly recommend using a Stop Loss on every trade as part of proper risk management and to help protect your account from excessive losses.

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