What is Risk-Free Trade?

A trade where the stop loss has been moved to the entry price (break-even), eliminating the possibility of loss. Moving to break-even too early can reduce win rate as normal price fluctuations stop yo

Risk-Free Trade in Prop Firm Trading

A trade where the stop loss has been moved to the entry price (break-even), eliminating the possibility of loss. Moving to break-even too early can reduce win rate as normal price fluctuations stop you out. Moving too late defeats the purpose. A common rule: move to break-even when price reaches 1:1 risk-reward.

Try the calculator

Open Calculator →
← Back to Glossary (78 terms)