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What Is a Stop Loss?
A stop-loss is an order that automatically closes a position when it reaches a certain loss level, capping the loss at a predefined point.
How a conventional stop works
A trader sets, for example, a 2% stop. If the market falls 2%, the position is closed automatically. The benefit is discipline; the drawback is that a temporary dip can lock in a loss that would have recovered.
Why GoldVault Pro does not use a conventional stop approach
The platform's strategy holds and manages losing positions instead of closing them automatically — balancing them with hedging and position management. This is a different philosophy, not a guarantee of success. Read why some strategies hold losing positions.
Quick answers
Does 'no stop-loss' mean no losses?
No. Holding losing positions can increase losses; risk always remains.
Is a stop-loss better than position management?
Neither is inherently better — they are different approaches with different risk profiles.