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Guide to setting Stop Loss (SL) and Take Profit (TP)

1. What are Stop Loss (SL) and Take Profit (TP)? Stop Loss (SL): Automatically closes a trade when price moves against you, limit...

Written by Jerome

1. What are Stop Loss (SL) and Take Profit (TP)?

Stop Loss (SL): Automatically closes a trade when price moves against you, limiting loss.

Take Profit (TP): Automatically closes a trade when price reaches target, securing profit.


2. Why set SL and TP?

  • Risk control: Ensures maximum loss is within limits.

  • Secure profit: Locks in gains and avoids losing them on reversals.


3. How to set SL and TP?

1️⃣ In MetaTrader 5 client:

  • When opening a trade: Input SL/TP directly.

  • After opening: Right-click order → “Modify” → set SL/TP.

2️⃣ Calculation:

  • SL points: Stop Loss price – Current price. Example: 50 points

  • TP points: Current price – Take Profit price. Example: 100 points

📌 Tip: Use reasonable ranges to avoid slippage and volatility risk.


4. How to optimize SL and TP?

1️⃣ SL tips:

  • Avoid too tight: May be triggered by small fluctuations.

  • Use ATR: Average True Range helps set proper distance.

2️⃣ TP tips:

  • Partial TP: Lock part of profit, let remainder run.

  • Technical levels: Use support/resistance for TP placement.

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