Generating Link… Please wait 20 seconds
Take Profit (TP)
It is a predefined price level, at which the trade will close automatically to make sure that one makes a profit.
It allows traders to capture the gains at a favorable market level.
Suppose you purchase EUR/USD at 1.1000 and set the TP at 1.1100. Now, once the price reaches 1.1100, your trade will be closed automatically and you will earn the profit.
Stop Loss (SL)
A predefined price level, at which the trade will close automatically in order to restrict the losses.
Purpose: It protects the trader from extreme losses in case the market moves against his position.
Example: You buy EUR/USD at 1.1000 and set an SL at 1.0900. The trade will automatically close if the price reaches 1.0900, limiting your loss.