In the terminology of Currency Management Automation, a Stop Loss order is triggered whenever an adverse movement in the exchange rate automatically triggers the execution of a forward contract aimed at protecting the exposure against further unfavourable movements. When protecting the budget, Stop Loss orders are often set by management when the firm faces a scenario of unfavourable forward points. In such a situation, delaying hedges makes sense. When the market rate reaches the ‘tolerance level’ set by the firm’s risk managers, the Stop Loss order is triggered and the hedge is executed. Because it is triggered only if a certain level of the exchange rate is met, a Stop Loss order is said to be a conditional order. In Currency Management Automation, Stop Loss orders are paired with Take Profit orders (another type of conditional order) aimed at locking-in favourable exchange rate movements. In order to avoid duplicating the volume of hedging, Stop Loss and Take Profit orders automatically cancel each other. For this reason, they are known as ‘OCOs’, or One-Cancels-the-Other.