Take Profit (TP) and Stop Loss (SL) are essential risk management tools in trading. They help traders control potential losses and lock in profits without constantly monitoring the market. Setting SL or TP allows you to remotely manage your orders and plan your trading strategy ahead.
Note:
Stop Loss (SL) and Take Profit (TP) must be set at a minimum distance from the current market price. This distance varies depending on the instrument. You can check the required distance in MetaTrader by navigating to: Market Watch > Right-click on the instrument > Specification > Stops Level.
Stop Loss (SL) and Take Profit (TP) must be set at a minimum distance from the current market price. This distance varies depending on the instrument. You can check the required distance in MetaTrader by navigating to: Market Watch > Right-click on the instrument > Specification > Stops Level.
Take Profit (TP)
A Take Profit order automatically closes your position when the price reaches a specified level of profit. This ensures you secure gains at your target price without manual intervention.
- Example: If you buy EUR/USD at the current price of 1.1000. The Stop levels for this instrument is 10. You TP at 1.1010 and above. You can set TP at 1.1050 and your trade will close automatically when the price hits 1.1050.
Stop Loss (SL)
A Stop Loss order automatically closes your position when the price moves against you to a specified level. This limits your losses and protects your account from significant drawdowns.
- Example: If you buy EUR/USD at 1.1000 and set SL at 1.0950, your trade will close if the price drops to 1.0950.
It’s important to know when you’re in profit or loss based on your order type. Your Stop Level should be placed above or below the price accordingly. We’ve prepared a simple guide for you - "Invalid Stop Loss" or "Invalid Take Profit" errors article.