Funded Account Forex TP and SL

Take Profit (TP)
Definition: A predefined price level at which a trade automatically closes to secure profit.
Purpose: Helps the traders lock in gains whenever the market reaches a favorable level.
Example: Suppose you buy EUR/USD at 1.1000 and set a TP at 1.1100, then the trade will close automatically once the price reaches 1.1100, securing your profit.
Stop Loss (SL)
Definition: A predefined price level at which a trade automatically closes to limit losses.
Purpose: Saves traders from huge losses if the market moves against the position.
Example: You buy EUR/USD at 1.1000 and set an SL at 1.0900. The trade will close automatically if the price reaches 1.0900, limiting your loss.
Key Points
Automation: Both TP and SL are set in advance. Thus, they work even when you are not monitoring the market.
Risk Management: They help maintain disciplined trading by limiting emotional decision-making.
Customization: The levels for TP and SL depend on your trading strategy, risk tolerance, and market conditions.