What are stop loss (S/L) and take profit (T/P)?
A stop loss (S/L) is an order that automatically closes a trade to limit potential losses. It triggers when the market reaches a certain loss level set by the trader, helping to prevent further losses if prices move unfavorably against them.
A take profit (T/P) is an order that automatically closes a trade to lock in profits. It triggers when the market reaches a predetermined profit level, locking in profits before the market can reverse.
Both S/L and T/P orders are important tools for managing risk and profits effectively in trading. However, please be aware that there is no guarantee that these orders will always execute at the specified levels, especially during times of high volatility or low liquidity.