What is a Stop Loss and Take Profit, and How Do I Set Them in MT5?

Stop Loss (SL): A Stop Loss is a risk management tool used to limit potential losses in trading. It automatically closes a position if the market price moves against you and hits a predetermined price level. This prevents further losses beyond your set threshold.

Take Profit (TP): A Take Profit is an order that locks in your profits by automatically closing your position when the market price reaches a certain profit level. It helps traders capture gains without having to manually monitor the market.

How to Set Stop Loss and Take Profit in MT5:

In MetaTrader 5 (MT5), setting a Stop Loss and Take Profit can be done directly through the trade window when you open a new position, or by modifying an existing trade. You simply specify the price levels where you want the Stop Loss and Take Profit to trigger.

Here is a generic YouTube video that explains how to set Stop Loss and Take Profit levels in MT5: How to setup Stop Loss / Take Profit & Trailing Stop on MT5

This video provides a step-by-step guide to setting these levels in the MT5 terminal, helping you manage your risk and secure profits effectively.