Risk Management

All trading involves risk. Learn to utilise the free tools on Mitrade to control risks effectively regardless of market conditions.
Take Profit/Stop Loss
Lock-in profit Limit losses Limit losses
Trailing Stop Loss
Maximize locked-in profit Automatically adjust the stop-loss price without having to monitor the position

Take Profit/Stop Loss

When setting up a new order or modifying an existing order, you have a choice to set your “Take Profit” and “Stop Loss”. Once the order is set, it normally closes according to the target price, so as to help you lock in the profit when the target price is reached, or minimises the loss if the market moves unfavourably.

Please note that, with any order, gaps may appear due to market conditions, in which case the system cannot execute the order at the default price, but will close the position at the next-most favourable price from the target price.

Example

The current price of EUR/USD is 1.13816/1.13837 (sell/buy). You have created a 1-lot (1 lot = 100,000 EUR) buy order at 1.13837 and have set a stop loss order at 1.13806.
Under normal circumstances, when the price falls to 1.13806, your stop loss order will be triggered and the position will be closed at 1.13806, with a total loss of USD31. However, when the market situation suddenly changes, and the price directly falls from 1.13837 to 1.13795, directly skipping over your stop loss target, a market gap appears, and so the system will not be able to close the position at 1.13806, but will choose the next most favorable price, which is 1.13795, to close your position, and the final loss will be USD42.

Trailing Stop Loss

Trailing stop loss (or “trailing stop”) is a powerful tool. The stop-loss price changes automatically with profit, so you can maximize your locked-in profit or reduce losses without having to monitor your position all the time. You only need to set a trailing stop loss when you create a new order. When the price is moving in the direction that is beneficial to you, your stop loss order will be automatically updated according to the latest price. Conversely, when the price moves in a direction that is unfavorable to you, the stop loss order will be activated and the position will be closed at the distance you set. Please note that, with any order, gaps may appear due to market conditions, in which case the system will not be able to execute the order at your default price, but will close the position at the next-most favorable price from the target price.

Example

The current price of EUR/USD is 1.13816/1.13837 (sell/buy). You have created a 1-lot buy order at 1.13837 and set a 100-point (0.00100) trailing stop loss. 
When the price of the product is 1.13816, your stop price is 1.13716. If the product sell price rises to 1.13846, the stop price will be updated according to the distance you set, and the updated stop price will be 1.13746.  Conversely, when the product price falls from 1.13846 to 1.13746, the trailing stop loss will be triggered and the position will be closed at 1.13746.

*Pip: In general, pip refers to the smallest unit of price change. For Mitrade, it refers to the last digit of the price.

Why Choose Mitrade?

Simple and Intuitive Platform

Experience a platform that integrates market updates, trading, market information, with account management and risk management.

Competitive Trading Costs

Enjoy low-cost trading, zero commissions, low overnight fees, and competitive and transparent spreads.

Competitive Threshold Trading Conditions

There is no minimum deposit requirement to open an account, and the minimum volume per trade is as low as 0.01 lots

Regulated by ASIC

Under the regulations of ASIC (AFSL398528), all client funds are segregated.

Protection Against Negative Balances

Your account will not lose more than your initial deposit under any market circumstances–our negative balance protection ensures your account never go below zero.

Excellent Online Support

Enjoy fast-response online customer service from our team of dedicated professionals.

FAQ

Before trading, each investor should consider "If the trade fails, how much do I wish to lose?"

If your stop-loss level is far from current price, you may have to endure a long period with a large floating loss before the stop-loss order is triggered. When stop-loss is reached, your account balance may drop significantly. So next day when you look at the loss of the previous day on the platform, your heart will sink.

With that in mind, you will start trying to set the initial stop-loss at a reasonable level. When the stop-loss price is reached, what you could do is only to wait patiently for the stop-loss to execute.

If you wish to avoid a major loss in a single trade, you may place a stop-loss order before each trade. The best approach to risk control is, assuming that your trade fails, to find the price level that you would call a failed trade, and let it be the stop-loss.


Please note: Margin FX and CFD trading carries a high level of risk and is not suitable for all investors.  Please read the Risk Disclosure Statement  before choosing to start trading.   

Domination by one's emotions often explains why the investor suffers perennial losses.

For example, some investors have established their own trading strategies that have undergone historical backtesting, and have implemented them in their trading. Influenced by market fluctuations when the market opens, they may rush to close their positions before their take-profit/stop-loss orders are triggered as planned, preventing their trading strategies from being effectively implemented. This is a pitiable situation.

This will seriously affect the investors' profit-and-loss ratios from implementing the consistent strategies in the long-term. This is the typical negative impact of sentiment-led trading. Remedies include trading with small positions when one's sentiment fluctuates, or even using a demo account until performance becomes stable before trading with the live account.


Please note: Margin FX and CFD trading carries a high level of risk and is not suitable for all investors.  Please read the Risk Disclosure Statement  before choosing to start trading.   

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