Take Profit and Stop Loss orders are key positioning directives for managing investment risk.
- Stop Loss: Stop Loss is designed to terminate (close) your investment. When a trading loss hits a predetermined stop loss price level, the stop loss price, which is the price you have determined has moved in the incorrect direction based on your analysis
- Take Profit: Take profit is the exact opposite of Stop loss. Take profit orders are used to lock in the profit from the deal. Once the desired profit is determined on an already opened order, the Take order will automatically close the contract when the profit reaches the specified amount.
In order to trade securities, stop loss and take profit options can be used with any broker’s trading software. In the absence of the TP/SL command, get in touch with your service provider because it is a crucial tool for Trading.