Setting a Stop Loss (SL) and Take Profit (TP) in trading is crucial for risk mitigation and should be included in most trading strategies. It is important to always consider SL and TP in every position.
Setting a stop loss and take profit in MT5 can be done in the new order window while opening a new position, or after a trade has already been opened.
Set a SL and TP for a new trade
- Open the New Order window to place a new trade.
- Input your predetermined SL and TP prices in their respective fields.
- Input your volume size and then place your order.
Set a SL and TP for an existing trade
Setting a Stop Loss and Take Profit for an existing trade in MT5 can be done in 2 ways:
- By double clicking on a trade in the trade window and modifying the stop loss and take profit in their respective fields
- By dragging the stop loss and take profit levels on the chart directly
Using the Trade tab
Navigate to the trade tab to reveal all the trades you have open, including the sizes, stop loss, take profit, and entry price for every trade.
In rare cases where the Trade tab is nowhere to be found, press CTRL + t to open it.
From here on:
- Hover over the trade to be modified and right-click
- Select “Modify or Delete”
After the order window appears, fill the new stop loss or take profit in their respective fields and then click “modify…”
You will then see the SL and TP levels you have set in the Trade tab.
Using the chart
Instead of using the Trade tab, it is possible to set and modify the SL or TP levels to the desired position directly on the chart.
- To set a SL and TP, click the dotted line on the chart that designates your entry position and drag the SL and TP to the correct level.
- In the case of the illustration above, you can see the position on chart “SELL 0.5 at 0.67222”.
- If you drag up on a Sell order a SL will be set and if you drag downwards a TP will be set, and vice versa for a Buy order.
- You can then proceed to modify the SL and TP on the chart by clicking the dragging the TP and SL red dotted lines if you so wish.