How to minimize losses when trading Forex, CFDs and binary options ?This is also true for investors who speculate on indices, stocks or commodities in the short term. Therefore, it is an important question for many traders how losses can be eliminated completely or at least minimized and limited. We would like to inform you about this topic and in this context, for example, we would like to discuss with which methods it is very likely or even guaranteed to limit imminent losses or in the best case even to avoid them completely. However, the respective instruments are not available for every type of trading, so that you as a trader will definitely want to distinguish whether you are trading forex, binary options or stocks, for example. The different instruments at a glanceDepending on whether you are trading binary options, forex or stocks, there are various ways in which you can limit impending losses. First of all, we would like to mention the main instruments available to you, namely:
Especially with the means listed first, namely loss protection as well as the additional feature Early Closure, it depends on whether the respective binary options broker offers this method at all. We will discuss this in more detail in the following section.
Binary options work in such a way that, on the one hand, the trader can achieve returns in the high double-digit or even triple-digit range. On the other hand, however, there is always the risk of losing the bet completely. When trading binary options, there is always a risk of total loss, which traders naturally want to avoid as much as possible. For this purpose, Exness Indonesia offer the possibility to protect at least a smaller part of the invested capital with the so-called loss protection. On the one hand, such a loss protection is not offered by every broker, on the other hand, it usually reaches a maximum of 15 percent. A loss protection of 15 percent means that you will not lose your entire capital in a losing trade, but you will still lose 85 percent of the stake. Only the mentioned 15 percent will then be credited back to you despite a losing trade. Another way to hedge already opened positions when trading binary options is the additional function Early Closure. However, we would like to mention at this point that not all binary options brokers provide such additional functions. The Early Closure as an additional feature is in a way comparable to a stop loss in stock trading. The broker gives the trader with the additional function Early Closure the possibility to sell the option in the portfolio back to the broker before it expires. If, for example, the trader realizes that he is speculating on a rising DAX index, but the German stock index has lost a lot of value since he bought the binary option, he could prevent even greater losses, in this case even total losses, by using the additional function.
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