A stop loss is a predefined price level at which a trade is automatically closed to limit potential losses. It is one of the most commonly used risk management tools in trading, helping traders control downside risk and avoid large, unexpected drawdowns.
At Moneta Funded, stop losses are not mandatory for simulated trades during challenges. You are not required to place a stop loss on every trade in order to remain compliant with the rules.
That said, we strongly recommend using stop losses as part of a disciplined trading approach. Stop losses help protect your account, enforce consistent risk management, and reduce the emotional pressure that can lead to impulsive decisions.
While you are free to manage risk in your own way, traders who use stop losses tend to maintain more stable performance and are less likely to breach drawdown limits.