Stop Loss Order

Stop Loss Order in International Trade

Meaning of Stop Loss Order, according to the Dictionary of International Trade (Global Negotiator): An order to buy (on a short position) or to sell (on a long position) foreign exchange if the rate rises above or falls below a specific limit. As soon as the rate reaches the prescribed limit, the order will be carried out at the next rate. Depending on the market situation, this rate can differ considerably from the limit rate.