In this last lesson, you will have an insight into how to use a stop loss and take profit when trading. Stop loss and take profit is just as important as the analysis traders make before entering a new position.
Stop-loss (SL) & Take profit (TP)
Stop loss refers to an order that traders use to limit losses on any open position. Take profit, also known as target price is an order that traders use to close a position when a certain level of profit is reached. SL/TP are therefore used to exit markets in a preferable way and at the right moment.