CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Take Profit and Stop Loss orders help you manage your open trades by securing profits or limiting potential losses. These orders can be set in the Profit/Loss tab of an open position, where you can define a target price or specify the profit/loss level at which the trade should close.
What are Take Profit orders?
A Take Profit order automatically closes a position when the price moves in your favour, locking in your gains.
- For long (Buy) positions, the Take Profit price is set above the current market price. The position closes once the price reaches or surpasses this level.
- For short (Sell) positions, the Take Profit price is set below the current market price. The position closes when the price reaches this level during a downward movement.
What are Stop Loss orders?
A Stop Loss order helps protect your position by closing it if the market moves against you.
- For long (Buy) positions, the Stop Loss price is set below the current market price.
- For short (Sell) positions, the Stop Loss price is set above the current market price.
❗️ Important
During periods of high volatility or market gaps, the execution price may differ from the Stop Loss level, potentially leading to a larger loss than expected.
What are the key features of the Take Profit and Stop Loss orders?
Both Take Profit and Stop Loss orders ensure trades are managed automatically without requiring constant monitoring. Take Profit acts as a Limit Order, while Stop Loss functions as a Stop Order. You can set one or both orders in the same position for greater flexibility.
Why do these orders matter?
Take Profit and Stop Loss orders are essential tools for managing risk and maximizing returns in CFD trading. They allow you to execute trades strategically, ensuring that profits are secured and potential losses are controlled.