Generating Link… Please wait 20 seconds
Take Profit (TP)
Definition: A pre-set price level at which a trade automatically closes to lock in a profit.
Purpose: This is meant to help traders lock in their gains once the market hits a favorable level.
Example: You buy EUR/USD at 1.1000 and set a TP at 1.1100. The trade will automatically close once the price hits 1.1100, securing your profit.
Stop Loss (SL)
Definition: A pre-set price level at which a trade automatically closes to limit losses.
Purpose: To safeguard traders from excessive losses when the market moves against their position.
Example: Suppose you have bought EUR/USD at 1.1000 and set SL at 1.0900; then, if the price drops to 1.0900, the trade will close automatically, limiting your loss.
