Forex Reviews

Is Hedge Order the Same as Stop Loss in Forex Trading?

A stop loss order is a commonly used trading order placed on a financial asset to protect an investor from potential losses on a specific trade. In Forex trading, a hedge order is an order placed to offset some of the risks associated with trading. It is not the same as a stop loss order and serves a different and more specialized purpose. Whereas a stop loss order attempts to limit the amount of a loss, a hedge order mitigates the risk a trader takes when placing a trade.