Wednesday, 15 February 2012

What is Take Profit / Stop loss ?

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What is Take Profit / Stop loss ?



now we have to know what is Take  profit / stop loss :



Take  Profit :
is thats means you choose a point or limit thats your order will stop to it because its your maximum profit you will have .




Stop Loss :
its means you choose a point or limit thats order will stop to because  it its your maximum loss .

we can have more understand with example in buy and sell





Buy :
if trader want to order buy for usd/jpy ,  he see that now price is 78.335 and price will arise to 78.360  but he is afraid that price may fail to 78.300
so he have to choose a range of the order to get profit and to stop loss so he decided to choose Take  profit at piont : 78.360
and stop loss at : 78.305
thats means if the price reached 78.360 the order will be closed automatically
and if reached 78.305 will be closed too




Sell :
 If trader want to order sell for cad/jpy ,, he see that now price is 78.52 and price will fail to 78.20 but he is afraid that price may rise to 78.80
so he have to choose a range of the order to get profit and to stop loss hee decided to choose take profit at 78.20 and to stop loss at 78.75
thats means order will be closed at 78.20 ,, and 78.75 what ever he loss or gain





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1 comment:

  1. I would like to suggest that you go with the best Forex broker - eToro.

    ReplyDelete

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