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Market Intelligence › Basic Terminologies
The situation where the logical stop is so tight that taking the proper size is not possible.
Published by The Retail Trader · JUL 31, 2026 · Risk Management
No-Trade Zone — A situation where the logical stop is so tight that taking the proper size is not possible. The correct answer is to leave the trade, not to shorten the stop.
This term comes under Risk Management, in the section "Where to put STOP LOSS". Placing stop loss and placing it at the right place are two different skills. Here are his methods and their trade-offs:
Other terms in this group — understanding them together is more useful:
• Structure-Based SL
• ATR-Based SL
• Percentage SL
• Time-Based Exit
• Volatility Stop
• Tight vs Wide SL
• SL Hunting
• Gap Through SL
• SL-M in Fast Market
To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.