Can I set both profit and loss values for the Take Profit/ Stop Loss Order on my open position? (2024)

FAQs

Can I set both profit and loss values for the Take Profit/ Stop Loss Order on my open position? ›

You can set a target price for both Take Profit and Stop Loss orders, both when you have an open position and before you open one. When the price of the instrument reaches either of these specified values, your position will be automatically closed.

One-cancels-other orders (OCOs) enable you to place two orders at the same time. If one of those orders is then triggered, the other will be automatically cancelled. This is particularly useful when setting both a stop loss and a take profit on an open position.

However, the Conditional Close cannot be used to set both a profit target and stop loss target at the same time. In other words, it is not possible to place “Combined” or “One-Cancels-the-Other” type orders using a Conditional Close order.

When you click on the Stop Loss button next to the position, you will see a pop-up window with information about the current position (1). To set Stop Loss or Take Profit parameters, specify the price (3). When the market price crosses the condition, a sell order will be executed at the current market price.

In general, the best ratio is 1:3, so the profit should be 3 times bigger than the loss. For example, if your Stop Loss equals 50 pips, the Take Profit should be 150 pips.

The 2% rule in investing suggests that you should never risk more than 2% of your capital on any single trade or investment. This approach helps manage risk by limiting potential losses and preserving capital for future opportunities.

After opening a position, you can click [Position], select the specific position to be closed, set [TP/SL] at the specific position page, enter [TP Trigger Price], [TP Order Price], [SL Trigger Price], [SL Order Price], and [Amount], click [Confirm].

What stop-loss percentage should I use? According to research, the most effective stop-loss levels for maximizing returns while limiting losses are between 15% and 20%.

A very popular profit-taking strategy, equally applicable to option trading, is the trailing stop strategy wherein a pre-determined percentage level (say 5%) is set for a specific target. For example, assume you buy 10 option contracts at $80 (totaling $800) with $100 as profit target and $70 as a stop-loss.

Most of the traders use the percentage rule to set the value of the stop-loss order. Usually, the one who wants to avoid a high risk of losses set the stop-loss order to 10% of the buy price.

What is the 7% stop-loss rule? ›

Always sell a stock it if falls 7%-8% below what you paid for it. This basic principle helps you always cap your potential downside. If you're following rules for how to buy stocks and a stock you own drops 7% to 8% from what you paid for it, something is wrong.

The 6% stop-loss rule is another risk management strategy used in trading. It involves setting your stop-loss order at a level where, if the trade moves against you, you would only lose a maximum of 6% of your total trading capital on that particular trade.

The calculators are based on a formula like this: (Target Profit or Loss / Percentage Profit or Loss) x asset pip size = Price change in pips from the current quote to set Take Profit or Stop Loss. Take Profit / Stop Loss = Initial price +/- price change in pips.

The use of a guarantee of compliance with limit orders, including take profit and stop loss, is prohibited as it can be used to circumvent regulatory restrictions and manipulate the market. This type of abuse is due to the nature of trading on a simulated platform.

TPSL orders allow users to set predefined profit and loss levels simultaneously for their position. When an asset price reaches one of the target prices, the position is closed with a limit order. If one of the orders is triggered, the other order is canceled automatically. An order can only have one TP/SL on one side.

A common rule is to aim for a risk-reward ratio of at least 1:2, meaning that for every dollar at risk, you aim to make at least two dollars in profit. Adaptability: Be flexible in adjusting your stop loss and take profit levels as market conditions change.