Is Stop Loss Required for Every Trade?

AIFO does not generally require traders to use a stop loss (SL) for every trade. Traders are free to decide whether to apply stop loss orders based on their individual trading strategies, market approach, and risk tolerance.

A stop loss (SL) is a core risk management tool that automatically closes a position when the market price reaches a predefined level. Its primary purpose is to limit potential losses, protect account equity, and help traders maintain disciplined execution. While not mandatory under standard trading conditions, the use of stop loss—combined with appropriate position sizing, risk exposure control, and sufficient margin—is strongly recommended to support long-term consistency and sustainable trading performance.

AIFO encourages all traders to adopt responsible trading practices. Relying solely on manual intervention or high-risk strategies without protective mechanisms may significantly increase the likelihood of large drawdowns or account instability. The proper use of stop loss helps ensure that trading outcomes remain controlled, measurable, and aligned with a defined risk framework.