Module 3: Trading Platforms
Stop-Loss and Take-Profit
5 min read
Stop-loss and take-profit orders close your trade automatically at levels you choose.
Stop-loss
A stop-loss closes a losing trade at a set price, limiting the loss if the market moves against you. In fast or gapping markets it may fill at a worse price (slippage). Some brokers offer guaranteed stops for a fee.
Take-profit
A take-profit closes a winning trade at a target price. Together with the stop-loss it defines your risk-to-reward ratio before you enter.
Key takeaways
- Set your stop-loss before entering.
- Stops can slip in fast markets.
- SL and TP define risk-to-reward.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.