A stop-loss order is commonly used in forex trading to limit the potential loss on a trade. It is an order placed with a broker that automatically closes out a position if the market moves against it.

The purpose of stop-loss orders in forex trading is to help manage risk and prevent significant losses from occurring. They are beneficial when trading volatile markets where prices move rapidly and unpredictably.

Stop-loss orders not only help to limit potential losses but can also be used to secure profits. This is accomplished by adjusting the stop-loss order as the market moves in your favor.

It's important to note that stop-loss orders aren't guaranteed to execute at the exact price specified. In highly volatile markets, the price may move so rapidly that the stop-loss order is executed at a worse price than expected. This can result in a large loss than intended, so it's important to carefully consider putting stop-loss orders in place and to review and adjust them as necessary on a regular basis.