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Risk cancellation sample 4

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Risk cancellation happens when you have an unrealized gain that can cover the risk you set for that particular trade.

It can also be a situation where an open position is on the winning side and just waiting for a trail stop/target profit to be executed.

In those situations, set your stops at breakeven.

Risk cancellation may give you more room to add trades/positions without adding the value at risk of your portfolio.

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