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Security & Insurance
Security & Insurance
Understanding Stop-Loss Orders – A Beginner Guide
What is a Stop-Loss?
Think of a stop-loss as an automatic safety switch for your trade. You tell the platform: “If the price falls to this point, close my position for me.” The order then sits in the background and fires the moment that price is touched, protecting you from a bigger slide.
How it Works in Practice
Example with Round Numbers
- You buy 100 shares at £10 each (£1,000 total)
- You add a stop-loss 1% below your entry: £9.90
- If price drops to £9.90 → the stop becomes a market order and sells your shares
- Worst-case loss: ~1% (£10) plus possible small slippage
You can set the stop as tight as 1% below your entry on our platform. If the trade doesn’t go your way, the most you stand to lose is approximately that 1%.
Stop-Loss vs Limit Order
| Feature | Stop-Loss | Limit Order |
|---|---|---|
| When does it trigger? | Only after price hits the stop level | Immediately, if market can fill at the limit or better |
| Fill price | Next available market price (can slip) | Exact limit price or better—never worse |
| Goal | Cut losses automatically | Enter or exit at a chosen price |
Finding the “Right” Stop Level
- If the market hits it, your idea likely failed—exit cleanly.
- Stops placed at round numbers (like 10%) often get swept up in noise.
Pick a price that proves you were wrong.
Avoid obvious zones.
Trail the stop to lock in gains.
Once the trade is positive, move the stop above your entry to secure profits.
Key Points
- ⦿ A stop-loss is your pre-set “exit if wrong” point—no emotion, no hesitation.
- ⦿ On our platform, you can set stops as tight as 1% bel
Risk-Control & Capital-Protection Framework
Applies to all live accounts on our hedge-fund–style trading platform1 | Mandatory Stop-Loss Guardrails
| Feature | Default Setting | Purpose |
|---|---|---|
| Capital-protection stop | Profit-locking stop | Execution |
| 1% below entry price | Movable above entry once in profit | Market exit on trigger |
| Caps single-trade loss. Order is auto-attached and only adjustable downward. | Secures gains while allowing upside. Can be static or trailing. | Ensures closure even in fast or gap-down scenarios. Slippage may occur. |
Why 1%?
Our quantitative desk analyzed thousands of intra-day equity, FX, and CFD moves. A 1% cap balances risk and reward while minimizing premature exits due to noise.
2 | Optional Capital Insurance
- ⦿ Coverage: Up to € / £ / AUD 1 million per client, underwritten by Lloyd’s of London
- ⦿ Scope: Cash balances and open CFD positions (excludes crypto spot)
- ⦿ Cost: Quoted individually, billed quarterly
- ⦿ Trigger: Insolvency, operational error, or defined misconduct (not market loss)
3 | Segregated Client Money
All client funds are held in ring-fenced trust accounts at AA-rated banks. In the improbable event of platform insolvency, these balances are protected from use by creditors.
4 | Institutional-Grade Cybersecurity
- ⦿ ISO-27001–aligned internal controls
- ⦿ Hardware-key 2FA for employees handling trades or funds
- ⦿ Real-time intrusion detection and quarterly external penetration testing
- ⦿ Annual security audit summary released each July
Key Points
- • Every trade opens with a non-removable 1% stop-loss.
- • Once profitable, stops may be trailed to protect gains.
- • Capital insurance and segregated client funds ensure account safety regardless of market volatility.