<p>A <strong>stop-loss order</strong> is a crucial risk management tool in trading, used to automatically close a position when it reaches a predefined level, limiting potential losses.</p>

<h2>How It Works</h2>
<p>A stop-loss order works like an insurance policy for your trades. Here's how it functions:</p>
<ul>
  <li>You set a stop-loss level at a price below your entry price for a long position or above your entry price for a short position.</li>
  <li>If the market moves against you and hits the stop-loss level, the order is triggered, automatically closing your position.</li>
  <li>On MetaTrader 5, you can place a stop-loss order directly from the 'Order' window or by right-clicking on the chart.</li>
</ul>

<h2>Why It Matters for Traders</h2>
<p>Using stop-loss orders is vital for traders as it helps manage risk and prevents losses from spiraling out of control. Here's why it matters:</p>
<ul>
  <li><strong>Risk Limitation</strong>: It caps your potential loss on a trade, ensuring you don't lose more than you're prepared to.</li>
  <li><strong>Emotional Discipline</strong>: It helps maintain emotional control by automatically closing a position, preventing impulsive decisions when markets are volatile.</li>
  <li><strong>Time Management</strong>: It frees up your time as you don't need to constantly monitor the market to close a losing position.</li>
</ul>

<h2>Example</h2>
<p>Let's say you're trading EUR/USD with STB Provider, using MetaTrader 5. You buy EUR/USD at 1.1800 with a stop-loss at 1.1750. If the price drops to 1.1750, your stop-loss order will be triggered, automatically closing your position and limiting your loss to 50 pips.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Always use a stop-loss order to manage risk and limit potential losses.</li>
  <li>Place your stop-loss at a level that invalidates your trading idea, not too tight or too wide.</li>
  <li>Regularly review and adjust your stop-loss levels as market conditions change.</li>
  <li>Remember, there's no such thing as a guaranteed trade; use stop-loss orders to protect against unexpected market moves.</li>
</ul>