A stop-loss is an order placed in your trading terminal to sell a security when it reaches a specific price. The primary goal of a stop loss is to mitigate an investor’s loss on a position in a security Equity, FX, etc.. It is commonly used with a long position but can be applied and is equally profitable for a short position. It comes very handy when you are not able to watch the position. Stop-losses in Forex is very important for many reasons.