Setting a Stop Loss (SL) and Take Profit (TP) in trading is important for risk mitigation and should be included in most traders’ strategy. It is important to always consider Stop Loss and Take Profits in every position. Opening orders without a Stop Loss or Take Profit specified is more of a “novice” mistake since the order will continue in its trend and can either be positive or negative.

When done right, a Stop Loss prevents you from losing too much of your investments on a particular trade. While Take Profit on the other hand, helps you secure your profits and exit the trade with a positive earning. When set, both triggers automatically at your pre-set levels.

• The Take Profit (TP) price or level for a buy trade (ask) will be higher than the Stop Loss (SL).
• And in the case of a sell trade (bid), the Take Profit (TP) will be lower than the Stop Loss (SL).

Setting a SL and TP Price in MetaTrader 5

Setting stop loss and take profit in MT5 can be done in the new order window while opening a new position, or after a trade has already been opened.

To set a Stop Loss and Take Profit price for a new trade in MT5:

• Open the New Order window to place a new trade.
• Input your predetermined SL and TP prices in their respective fields.
• Input your volume size and place your order.

Setting a Stop Loss and Take Profit for an existing trade in MT5 can be done in 2 ways:

1. By using the “modify” option from the menu
2. By dragging the stop loss and take profit levels

Using the modify option

Navigate to the trade tab. Click on this tab to reveal all the trades you have placed, including the sizes, stop loss, take profit, and entry price for every trade.

In rare cases where the trade tab is nowhere to be found, click on CTRL + T to open it.

From here on:

• Highlight the pair to be modified and right-click
• Select “modify or delete order”
• After the order window appears, fill the new stop loss or take profit in its respective field and click modify.
• A message box will appear to confirm your adjustments.

Dragging the SL and TP levels

Instead of using the modify option, It is possible to move the stop loss or take profit levels to the desired position directly on the chart. To modify your Stop Loss and Take Profit using this method:

• Hover over the SL or TP line, a small arrow will pop up next to the cursor, click and hold the cursor over the line…
• Drag the TP or SL to the desired level, either upwards or downwards.
• Release the cursor and the modify window will pop up.
• Click on modify and your changes will be live.

Conclusion

It is important to always consider Stop Loss and Take Profits in every position.

Opening orders without a Stop Loss or Take Profit specified is more of a “novice” mistake since the order will continue in its trend and can either be positive or negative.

A boundless trade might result in a profit or a loss.

Or even both, depending on how volatile the market is at that particular time.

Setting stop loss and take profit in MT5 can be done in the new order window while opening a new position.