💡 If you are new to trading or want to improve your strategy, it is essential to understand some key terms that you will find on the Doto platform.
Stop Loss
Stop Loss (SL) is a tool that allows you to limit your losses automatically. When the price of an asset reaches the level you set, the order is immediately closed to prevent you from losing more than you planned.
📌 Example: If you buy an asset at $100 and set a Stop Loss at $95, your position will be automatically closed if the price drops to that level.
Take Profit
Take Profit (TP) is the opposite of Stop Loss: it closes your trade automatically when you reach a predetermined profit. This helps you lock in your profits without having to monitor the market constantly.
📌 Example: You buy an asset at $100 and set a Take Profit at $110. If the price rises to that level, the order is executed, and you lock in your profit.
Lot
Lot is the unit of measurement in trading. It determines the size of your trade and varies by market.
Lot types:
Standard lot: 100,000 units of the underlying asset.
Mini lot: 10,000 units.
Micro lot: 1,000 units.
📌 Example: If you trade a mini lot on EUR/USD, it means that you are trading 10,000 euros.
Margin
Margin is the capital needed to open a trade. It is not the total cost of the operation but a percentage that the broker requires as a guarantee.
📌 Example: If you trade with a leverage of 1:100, you only need 1% of the total value of the trade as margin.
Stop Out
Stop Out occurs when your margin level drops below the minimum required percentage of 50% on Doto. At that moment, the platform automatically closes your trades to prevent your account balance from reaching zero.
📌 Example: When margin level reaches 50% or below, some of your positions will be closed when your available margin falls below that level.
Slippage
Slippage is the difference between the expected price of an order and the actual price at which it is executed. It can occur in volatile markets or when there is low liquidity.
📌 Example: You want to buy an asset at $100, but the order is executed at $101 because of high volatility.
Bonuses on trades
To use your bonus on trading, the trade amount must be greater than your actual funds, ensuring that your balance exceeds the bonus.
If an equity of the trading account becomes less or equal to the amount of bonus funds credited to the account, the bonus will be canceled.
If the amount is greater, the bonus will be activated.
📌 Example: If you have a $100 real balance and a $50 bonus:
$80 transaction → Your actual balance is used.
$150 transactions → The bonus is used.
Market order
Market order is an instruction to buy or sell a financial instrument immediately at the best available price. While market orders ensure execution, they do not guarantee the price displayed when placing the order.
📌 Example:
If you place a market order to buy EURUSD, your trade will be executed at the best available price in the market at that moment.
Market orders are ideal for traders prioritizing swift execution over precise pricing, such as during volatile market conditions.
Pending orders
A pending order is an instruction to buy or sell a financial instrument at a predefined price in the future. Pending orders are used when you want to enter the market at a specific price level rather than the current market price.
Buy limit
It is an order to buy a financial instrument at or below a specified price, called a limit price. This order type is used when you think the price will drop to a certain level before rising again.
📌 Example
If EURUSD is currently trading at 1.2000, you might set a buy limit order at 1.1950, expecting the price to fall to this level before increasing. |
Sell limit
It is an order to sell a financial instrument at or above the current price. This is used when you think the price will rise to a certain level before dropping again.
📌 Example
If EURUSD is currently trading at 1.2000, you might set a sell limit order at 1.2050, expecting the price to rise to this level before falling.
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Buy stop
It is an order to buy a financial instrument at a price above the current market price. This is used when you think the price will continue to rise after reaching a certain level.
| 📌 Example
If EURUSD is currently trading at 1.2000, you might set a buy stop order at 1.2050, expecting the price to continue rising if it hits this level. |
Sell stop
It is an order to sell a financial instrument at a price below the current market price. This is used when you think the price will keep falling after reaching a certain level.
📌 Example
If EURUSD is currently trading at 1.2000, you might set a sell stop order at 1.1950, expecting the price to continue dropping if it hits this level. |
Buy stop limit
Order is based on two price levels. First, the price reaches the preset level (stop price) on the upside, which triggers an order being placed below the current price (limit price). In a positive scenario, a bounce from this level upwards will bring a trader good results.
📌 Example
If EURUSD is currently trading at 1.2000, you might set a buy stop limit order with a stop price at 1.2050 and a limit price at 1.2060. If the price hits 1.2050, a buy limit order at 1.2060 will be triggered. |
Sell stop limit
Order is based on two price levels.
First, the price reaches the preset level on the downside (the stop price), which triggers placement of an order above the current price (the limit price).
After that level is reached, the order is triggered. In a positive scenario, a bounce from this level downwards will bring good results to a trader.
A sell stop limit order is a combination of a sell stop order and a sell limit order. A sell stop limit order triggers a sell limit order once the stop price is reached. This allows you to set the minimum price you’re willing to sell at.
📌 Example
If EURUSD is currently trading at 1.2000, you might set a sell stop limit order with a stop price at 1.1950 and a limit price at 1.1940. If the price hits 1.1950, a sell limit order at 1.1940 will be triggered. |
📌 If you are in profit and you want to close the trade, the process of cling the running trades.
💡 In Doto, you can easily set Stop Loss and Take Profit from the platform to manage your risk efficiently. In addition, we offer you advanced tools to monitor margin and avoid Stop Outs.