![]() In this case, set the stop-loss to $75 and if the price ever decreases to $75, your position is closed and you get away with a $25 loss. You buy an asset at $100 and decide you can't afford a loss of more than $25. The stop order for minimizing your losses is usually called a stop-loss order (S/L). What you then need to do is set the take-profit level to $125 so that once the price reaches $125, your position is closed and you take your $25 profit. ![]() Let's say you buy an asset at $100 and decide you'd be happy with a $25 profit. This example will help you better understand take-profit. The stop order for securing your profits is usually called a take-profit order (T/P). Once your market or limit buy order is executed and you have an open position, you'll probably want to both secure your profits and minimize your losses, depending on how the market turns. This is what stop orders are designed to do. You can set up a limit order when you purchase the product, similarly to stop-loss orders. Go to the trading platform and look for the order execution interface. ![]() This is a basic function at all brokers in fact, it's one of the reasons they exist: to allow you to set such orders.
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