What Happens Now?
Let's continue with the same example:
Let's examine what happens when the deal ends, in various exchange rates:

[1] The exchange rate EUR / USD is 1.1000.
In this case - the deal has been already closed at your pre-defined STOP-LOSS rate of 1.0850. You have lost EUR100, the amount you were willing to risk.
[2] The exchange rate EUR / USD at deal end is 1.0795. You lost EUR51.
[3] The exchange rate EUR / USD at deal end is 1.0500. You made profit of EUR229.

Notes:
[1] the example provided is for illustration purposes only, and does not take spreads into consideration.

[2] In real life - the exchange rates automatically and continuously change. Whenever you wish to make a deal with a specific rate appearing on the screen, it will be "frozen" for you, allowing you few seconds to accept or to reject it.