Generating Link… Please wait 20 seconds
Take Profit (TP)
Definition: A predetermined level at which a trade automatically closes to lock in a profit.
Purpose: Aids traders in locking their gains when the market goes to a favorable level.
For example, if you go long on EUR/USD at 1.1000 and set a TP at 1.1100, the trade will close automatically once the price hits 1.1100, locking your profit.
Stop Loss (SL)
Definition: A pre-set level at which a trade automatically closes to prevent losses.
Objective: Protects the trader from losses in case the market moves against his position.
For instance, when a trader buys EUR/USD at 1.1000 and sets an SL at 1.0900, the trade will be automatically closed if the price drops to 1.0900, limiting loss.