What is a stop loss & take profit order?

A stop loss order is when a trader indicates when they are ready to close their position, even if they are not near their device. Forex Stop Loss and Take Profit orders are executed automatically by trading platforms. That’s right, a stop loss order will remain active even if you are not touching your computer or smartphone.

Is a stop loss better than a take profit?

Due to its capital protection function, a stop loss is undoubtedly more helpful for risk management than a take profit, which is why it’s generally recommended always to include it in your strategies. Of course, the usefulness and effectiveness of these orders depend on their proper use.

What is a trailing stop & a take profit order?

Trailing Stops work best in calm conditions when prices are trending gradually. A take profit order is the exact opposite of stop loss orders. This order type tells your broker to close the position, once the price reaches a certain point. The order is executed automatically.