Controlled Risk
A position whose maximum possible loss is capped at a certain level, typically through a guaranteed stop-loss order, giving the trader full control of risk on the trade.
Related terms
Guaranteed Stop
A stop-loss order that ensures a position is closed at the exact price specified, regardless of market volatility, slippage or gapping. Guaranteed stops are often free to attach, but brokers charge a premium if the order is triggered, reflecting the risk they take on.
Read full definitionStop-Loss Order
An order to buy or sell once a currency or security reaches a specified price, designed to limit a trader’s loss on a position. The trade is processed only if the chosen rate is reached, capping downside without the need to monitor the market constantly.
Read full definitionRisk Management
The employment of financial analysis and trading techniques, such as attaching stops and limits, to reduce and control exposure to various types of risk.
Read full definitionMore in Trading
Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
Read full definitionAt or Better
An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBroker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
Read full definitionWant this applied to your business?
Our specialists turn Trading concepts into a practical strategy.