Defensive FX Trading includes using break even stop after a predetermined take profit level is achieved. The action of shifted initial stop loss to entry price is called break even stop. This means which ever the direction the market decides to move, the risk after implementing a break even stop is zero loss.
While using a break even stop, a forex trader can also execute partial close when the first take profit level is achieved. This means that he can close 50% of his contract and can extract a small profit out of the market.
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