<h2>Hard Stop</h2>
<p>In trading, a <strong>hard stop</strong> is an order instruction that automatically closes a position when a specific price level is reached, regardless of market conditions. It's a crucial risk management tool used to limit potential losses.</p>

<h2>How It Works</h2>
<p>A hard stop is placed at a level where you're willing to accept a loss on your trade. Here's how it works:</p>
<ul>
  <li>You open a position, either long or short.</li>
  <li>You set a hard stop order at a certain price level.</li>
  <li>If the market moves against your position and hits the stop price, the hard stop order is triggered, automatically closing your position.</li>
</ul>
<p>Hard stops can be placed using your broker's trading platform, such as <strong>MetaTrader 5</strong>, or through your broker manually.</p>

<h2>Why It Matters for Traders</h2>
<p>Hard stops are essential for traders due to several reasons:</p>
<ul>
  <li><strong>Risk Management:</strong> They help limit potential losses, ensuring you don't lose more than you're comfortable with.</li>
  <li><strong>Emotional Control:</strong> Hard stops prevent impulsive decisions driven by emotions, such as holding onto a losing trade in hope of a turnaround.</li>
  <li><strong>Discipline:</strong> They enforce discipline in your trading, ensuring you stick to your predefined risk management strategy.</li>
</ul>

<h2>Example</h2>
<p>Let's say you've opened a long position on EUR/USD at 1.18500 with a leverage of 1:300. You've set a hard stop at 1.18000. If the price falls to 1.18000, your hard stop will be triggered, closing your position and limiting your loss to 50 pips (or $50, given your leverage).</p>

<h2>Key Takeaways</h2>
<ul>
  <li>A hard stop is an automatic order to close a position at a specific price level to limit losses.</li>
  <li>It's a crucial risk management tool that helps traders control their emotions and stick to their trading strategy.</li>
  <li>Hard stops can be placed using your broker's trading platform or manually through your broker.</li>
</ul>