Do I need to use a stop loss?

Modified on Wed, 13 May at 12:39 PM

 No, using a stop loss is not mandatory when trading with Hantec Trader.

Risk Management Recommendation

Although not required, the use of a stop loss is strongly recommended as part of sound risk management. A stop loss helps limit potential losses by automatically closing a trade when the market moves against your position.

Using stop losses can help traders:

  • Control risk on each trade
  • Protect account balance from large drawdowns
  • Maintain consistency and trading discipline

Important Note on Slippage

Traders should be aware that stop losses are not always guaranteed to execute at the exact specified price.

During periods of high volatility or low liquidity, the market may move past your stop level.

This can result in slippage, where the trade is executed at the next available price.

Slippage is more common with larger position sizes or during major market events.


Final Consideration

While trading without a stop loss is permitted, it significantly increases risk exposure. Traders are encouraged to apply proper risk management techniques to help protect their accounts and support long-term consistency.

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