Closing a Trade with a Market Order
To lock in your profit, you should close your position with a market order. To close the position, click on the rightmost Close button, located in the Trading Toolbox. That will exit your trade and lock in your profit.
Setting a Stop-Loss to Avoid Excessive Losses
What is Stop-Loss
If you want to limit your potential losses in case the price moves in an unfavorable direction, you should place a Stop-Loss order. A Stop-Loss is an instruction for a broker to close a position when the price reaches a certain level. It functions as a protective order that is attached to a position.
Why is Stop-Loss Important
Stop-Loss is an optional order. Of course, you can monitor your positions on your own and can close or modify them manually whenever you want. However, this approach has several disadvantages: It is difficult for you to be in front of a computer all the time, and there can be internet connection losses. Stop-Loss order is designed to mitigate these risks. When you set a Stop-Loss order, it is stored and executed on the broker's server.
How to Set a Stop-Loss Order
There are several ways to set a Stop-Loss order.
To place a Stop-Loss for an existing market position, click on a particular position in the “Positions” tab and set the “Stop-Loss price”.When opening a new position, simply specify the Stop-Loss price in the New Order tab.
A Stop-Loss can also be set for pending orders. When a pending order is filled, an opened position will inherit a Stop-Loss price specified in the pending order.
Setting a Take-Profit to Lock In a Desired Profit
What is Take-Profit
If you want to lock in your profits in case the price moves in a favorable direction, you should place a Take-Profit order. A Take-Profit is an instruction for a broker to close a position when the price reaches a certain level. Take-Profit functions as an additional order attached to a position or a pending order.
Why is Take-Profit Important
Similar to Stop-Loss, a Take-Profit order is optional. You can monitor the profitability of your positions on your own and can close them manually. However, when a Take-Profit order is set, it is stored and executed on the broker's server automatically.
How to Set a Take-Profit Order
A Take-Profit order can be set in two ways.
To place a Take-Profit order for an existing market position, click on a particular position in the “Positions” tab and set the “Take-Profit price”.
When opening a new position, simply specify the Take-Profit price in the New Order tab. A Take-Profit can also be set for pending orders. When a pending order is filled, an opened position will inherit a Take-Profit price specified in the pending order.
