February 2, 2022
Trading on the VT Markets platform empowers you with advanced tools like Stop Loss (SL) and Take Profit (TP) orders to manage your trades effectively, even when you’re not actively monitoring the markets. Additionally, it also closes your position automatically when it reaches your profit target.
Understanding Stop Loss (SL) and Take Profit (TP)
On the platform, there are two facilities: Stop Loss and Take Profit, commonly referred to as SL and TP.
Stop Loss (SL) is an automated order to close a trading position once it reaches a specific price, minimizing potential losses. For instance, if you’re buying, you would set an SL below the entry price to cap potential losses. Hence, the purpose of a Stop Loss (SL) is to cap your potential losses.
Take Profit (TP), on the other hand, is an order to close a trade when it reaches a predetermined profit target, securing your gains. When buying, you place TP above the entry price to realize profits once reached.
Setting Up Take Profit and Stop Loss
How to use Take Profit
Take Profit can be set at the beginning when you enter a position and modified when the position is already running. When creating TP, you must put it in a profit position below or above the entry position. Meanwhile, when the position price is already running, you can modify it (or create a new one if you haven’t yet) by determining TP below or above the current running price.
How to use Stop Loss
Stop Loss can be set at the beginning when you enter a position and modified when the position is already running. When setting up an SL, you must put it in a loss position below or above the entry position. When the price of the position is already running, you can modify it (or create a new one if you haven’t done yet) by setting an SL below or above the current price.
Common ways when using Stop Loss:
Set standard Stop Loss to limit losses – The most standard Stop Loss is to limit losses, hence the term. The way to set it is when entering a position and then enter Stop Loss in the Stop Loss section of the VT Markets trading platform. If you are not on standby and the price hits the Stop Loss, your position will be closed automatically.
Set Stop Loss profit to maintain profit – The second way to use Stop Loss is with Stop Loss profit. This is a trick to keep profits running. For example, when you place a position, which goes well in the end, you will reap benefits. The moment you get the floating profit results, you can modify the initial Stop Loss and change it to the entry price or a better price. When the market reverses direction, the Stop Loss will get hit; however, it will still record positive results (unless there is a price gap).
Using Stop Loss & Take Profit for Forex
Stop Loss and Take Profit tools are essential for managing Forex trades effectively, providing peace of mind and enhanced control over trading outcomes. For more detailed guidance on setting these orders, visit our trading platform or consult our support team.
Start Your Forex Trading Journey with VT Markets here!
