English
RussianStop-Loss and Take-Profit: What They Are and Where to Set Them
A stop-loss closes a trade at a set loss, a take-profit at a set gain. Both are placed in advance.
A stop-loss is insurance: it caps the loss on a trade at the amount you accept. It goes where the trade idea stops working, for example beyond a support level.
A take-profit locks in gains automatically so you do not hand them back to the market. Positions are often closed in parts at several levels.
Round numbers and obvious levels collect lots of stops, and price often spikes through them. So give stops some room, and check the order book and liquidation map first.
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Frequently asked questions
Where should I set a stop-loss?
Where the trade scenario breaks: beyond a level or the last swing low or high, with a little room from the obvious spot.
Is a stop-loss mandatory?
With leverage, yes: without it only liquidation limits the loss.