Trading on the international currency market Forex – quite risky occupation, which can multiply the wealth of a trader, so let it go around the world. To avoid total ruin, you need to be able to use Stop Loss and Take Profit orders correctly (limit), which can be easily set using the metatrader program. They are used to hedge risks, minimizing losses and determining profits. For example, orders allow you to close all trader's deals, prices for which fell to a certain level, in automatic mode, which will prevent the loss of a larger amount, than that, which was invested by a trader (this operation is called Margin Call). If the quote for the position opened by him falls below the level of the trading account covered by the used margin, the position will automatically close. In this way, the exchange player will not be able to lose more in the deal, than your initial investment.
To close the deal, there is no need to wait for the loss of the full investment amount. Using stop orders on the platform metatrader, the player can prevent the value of his positions from falling below a certain level, thereby limiting the maximum amount, which he is ready to irrevocably spend in the course of a trading operation. This eliminates the need for round-the-clock monitoring of the current market situation. It is impossible to fully insure against unprofitable transactions. Even the greatest and most successful traders lose large sums from time to time and even end up in long black streaks., from which they get out with great difficulty. However, they all know, how to limit losses in unprofitable operations, controlling risks and competently using stop orders in the metatrader program.
Sometimes called Take Profit, limit orders are similar to stop losses, however, they are not responsible for minimizing losses, and for the withdrawal of profit. When the trader's deal reaches a certain, a predetermined level of profitability, она автоматически закроется и trader гарантированно получит доход. If a trader worked without a limit order, he could have missed the moment of reaching the profitability level. Introduce, that after that the price of the currency fell again. As a result, the exchange player will not only be left without actually earned money, but in addition will incur losses. Orders, exhibited in the trading platform by metatrader, are incredibly simple, but extremely important tools for building a career as a successful trader. Use them in every trade, особенно на первых порах.
