“Unlock the Secrets of Forex: Your Ultimate Glossary Guide that Every Beginner Must Know!”
Take Profit and Stop Loss
Take profit and stop loss are two important terms associated with risk management in the forex market. They are used by traders to manage the risk of their trades and to protect themselves from potential losses.
A take profit order is a pre-determined order that automatically closes a trading position when a certain level of profit is reached. For example, if a trader has a long position in the EUR/USD pair and they want to lock in their profits once the pair reaches a certain level, they can set a take profit order at that level. Once the pair reaches the take profit level, the trade will be automatically closed and the profits will be locked in. Take profit orders help traders to ensure that they are able to capture their profits and reduce the risk of losing them.
