What is a Stop loss / Take profit?

Modified on Fri, 9 Aug at 11:36 AM

A Stop loss (SL) is the most used (and quite simple) "safeguard", to limit your potential trading losses. If the market trend runs against your trade/position, the SL will close your open position, activating at the defined SL level.


A Take profit (TP) is the opposite: it will close your open position at a level you define, to save already reached, but so far floating profits.


Take profit and Stop loss levels can be placed in prices or numbers of pips from the price specified in the order, depending on the platform settings. In Forex trading, Take profits and Stop losses are primarily risk management techniques.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article