Take Profit & stop Lose

Take Profit (TP)
Definition: A price level at which a given trade automatically closes to secure a profit.
Purpose: Traders use it to lock in gains when the market reaches a favorable level.
Example: You purchase EUR/USD at 1.1000 and set a TP of 1.1100. Your position will close automatically when the price reaches 1.1100; thus, securing your profit.
Stop Loss (SL)
Definition: A price level set beforehand for a trade to be closed automatically to minimize losses.
This strategy serves to cushion traders from further loss if the market moves in a direction that does not favor them.
For example, if one sells EUR/USD at 1.1000 and a Stop Loss of 1.0900 has been set; once the price falls to 1.0900, then the trade closes, and it minimizes losses.
Key Takeaway
Automates: Even if you do not monitor the market, it executes TP and SL.
Risk Management: Helps ensure disciplined trading because it stops emotional decision making.
Customization: The different levels for TP and SL are up to the individual trading strategy, risk tolerance, and market conditions.