How to Add Stop-Loss and Take-Profit Orders?

During trading in the financial market, it is important to have a strategy for managing profits and risks. Achieving profits and limiting losses are essential parts of risk management and capital protection. In this article, Headway experts share how you can use Take-Profit and Stop-Loss orders to control your positions.

What are Stop-Loss and Take-Profit?

Two common orders can be used for this purpose:

Stop-Loss is an order set to execute a trade when a certain level of loss is incurred. The purpose of a Stop-Loss order is to protect capital from significant losses. When the price reaches the specified Stop-Loss level, the order is automatically executed, and the trade is closed to limit the loss within acceptable boundaries.

Take-Profit is an order set to execute a trade when a certain level of profit is achieved. When the price reaches this level, the order is automatically executed, and the targeted profit is fixed. This order helps in capturing profits when specific targets are met and avoiding missed opportunities.

Where to find Stop-Loss and Take-Profit?

When you place a buy or sell order in MetaTrader, you will see an option to set a Stop-Loss or Take-Profit level available in the Order window. You can set these orders before opening a position based on your strategy and desired profit/loss levels.

What to do after you set SL and TP?

After the order is executed, you can monitor the performance of the open trade in your trading window. The SL and TP levels you have set will be displayed on the chart. They will be automatically executed when the price reaches these levels.

You can change the Take-Profit and Stop-Loss levels after the order is executed on the MT4 or MT5 platform. This step can be useful in case of new developments in the market or changes in your trading strategy. 

To change the Take-Profit and Stop-Loss levels, follow these steps:

Open the trading window. Select the trade for which you want to change the Take-Profit and Stop-Loss levels in the trading window. You can find open trades in the “Trade” or “Open Trades” tab in the MT4 or MT5 platform.

Modify the order. After selecting the trade you want to modify, right-click on the trade and choose “Modify” or “Modify Order” from the dropdown menu.

Change the Take-Profit and Stop-Loss levels. In the order modification window, you will find options to change the Take-Profit and Stop-Loss levels. Adjust the desired values and click the “Confirm” or “Modify Order” button to save the changes.

Confirm the modification. After modifying the Take-Profit and Stop-Loss levels, the changes will be reflected in the trading window. Make sure the new levels align with your strategy and goals before continuing with the trading.

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