Question: What is "Stop Loss" order on MT4 and MT5 trading platforms? How does it work?
“Stop Loss” order is used for minimizing losses if the security price moves the wrong direction.
If the security price reaches this level, the entire position is closed automatically.
You can set this “Stop Loss” order when you open a position or after opened a position.
The information of your “Stop Loss” will be registered in your Forex broker’s trading server, thus this type of order will be executed even when your trading platform is closed.
“Stop Loss” order is used to limit the loss to the certain level, and “Take Profit” order is used to secure the profit at the certain level.
These are the two main pending orders to close existing open positions.
This order condition for long positions is checked using the Bid price (the order is always set below the current Bid price), and the Ask price is used for short positions (the order is always set above the current Ask price).
For the list of MT4 and MT5 brokers, please visit the page below.
