Stop loss and take profit forms two important elements of trade management and is just as important as the analysis one would do before opening a position. In this article, we present a brief guide to using stop loss and take profits and also present a detailed tutorial into how to set the Stops and target levels using the MT4 trading platform.
Stop loss (SL) or stops is defined as an order that you tell or send to your broker telling them to limit the losses on an open position (or trade).
Take profit (TP) or target price is an order that you tell or send to your broker informing them to close your position or trade when price reaches a specified price level in profit. To learn more about these orders, read our article on Types of Orders in MetaTrader to learn in detail about the limit and stop orders. Stop loss and take profit levels are static in nature. In other words, the orders are triggered (and your trade is closed) when a security reaches a specified price level.:p :) :eek:
Stop loss (SL) or stops is defined as an order that you tell or send to your broker telling them to limit the losses on an open position (or trade).
Take profit (TP) or target price is an order that you tell or send to your broker informing them to close your position or trade when price reaches a specified price level in profit. To learn more about these orders, read our article on Types of Orders in MetaTrader to learn in detail about the limit and stop orders. Stop loss and take profit levels are static in nature. In other words, the orders are triggered (and your trade is closed) when a security reaches a specified price level.:p :) :eek:
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