How to set Stop loss & Take profit on MT4 mobile

TutorialsMarch 1, 2022

Udemy.com – Top Online Cryptocurrency Courses from $9.99 Get now!

Mobile phones apparently play an important role to traders. MT4 mobile apps are frequently used by many people to trade, track orders, and monitor charts, which brings traders convenience and effectiveness in trading. This guide shows you how to set Stop loss (SL) & Take profit (TP)on MT4 mobile when opening a new trade or adjusting an existing position.

How to set Stop loss & Take profit for new orders

To set a stop-loss and take profit for new orders on MT4 mobile phones, after navigating to the “Quotes” tab -> selecting the instrument -> tapping on “New order”, you will see a popup window as shown below:

Then you need to fill in the Stop Loss or Take Profit details in the SL and TP fields as your preference.

Note: If your Stop Loss or Take Profit is set too close to the current price, the notification “Invalid S/L or T/P” will be shown.

How to set Stop loss & Take profit for open trades?

In case you want to add or modify Stop loss and Take profit for existing positions, please follow the guide below:

  • Go to the “Trade” tab, and you will view all the open trades.
  • Tap and hold the open position you want to add Stop loss and Take profit. A new pop up window will appear.
How to set Stop loss & Take profit on MT4 mobile
  • Select “Modify”. You will then be asked to enter your stop loss or take profit.
  • Once you have done, tap on “Modify”.

Why should you set SL & TP?

To minimize risk or maximize potential profit, traders often use Take profit (take profit) and Stoploss (stop loss) orders when placing trade orders.

Stop Loss (SL) and Take Profit (TP) are limit orders that precisely set the price level at which a position is automatically closed to avoid losses or lock in profits. However, they are used in different ways. Specifically,

Stop Loss

Stop Loss is used to managing the risk level for the investment amount, to avoid excessive loss of investors’ tolerance.

The stop loss order will take effect when your loss reaches the predetermined stop loss price. The stop loss price is the price you have previously set and it will be executed in case the price trend goes against your prediction.

For a long position, the stop loss price is lower than the current market price. Conversely, the stop loss price is higher than current market price for a short position.

Before placing a stop loss order for a certain trade, you should consider how much loss you can accept for that particular trade.

For example, if you place a stop loss order in the amount of $3.7 for a buy trade. If the total investment value for this stock loses $3.7, the order will be closed automatically. This helps reduce the risk in case the price will fall deeper and the amount of loss is higher.

Take profit

Take profit is used to close a trade automatically at a specific rate that you are happy to close an order for a profit. When the trade is profitable and reaches the previously set price, the trade will automatically be closed.

For a long position, the take profit is higher than the current market price. Conversely, the take profit is lower than the current market price in a short position.

To sum up, deciding when to exit a profitable trade is just as important as deciding when to exit a losing trade because it affects how profitable you are in the long run.

By using SL and TP, traders no longer worry about being stuck at their computer waiting for a specific price to execute trades manually.

Investiki.com

guest
0 Comments
Inline Feedbacks
View all comments