Placing a stop loss or take profit order is a crucial aspect of managing your trades effectively on the MetaTrader 4 platform (MT4). By setting a stop loss, you can limit your potential losses and protect your account from significant drawdowns. Conversely, a take profit order allows you to lock in profits and exit the trade at a predetermined price level. In this guide, we will provide you with a step-by-step process on how to place a stop loss or take profit order on MT4.
After logging into your Mt4 account, select which instrument you would wish to trade from the Market Watch window, this can be found on the left-hand side of the platform.
Click and drag the instrument into the graph area to the right of the Market Watch window to render the graph for that instrument.
In the toolbar menu above the graph, there will be a “New Order” button, click this button to open up the Order window.
In the Order window, there will be options for you to change the currency pair, the lot size, and importantly, the Stop Loss and Take Profit. When the settings are at your desired values you can place your trade by clicking on the “Sell by Market” or “Buy by Market” buttons.
When placing a Stop Loss or a Take Profit level the following parameters must be met: On a Buy Order, the Stop Loss level must be placed at a lower price than the Order price, as well as this, the Take Profit level must be placed at a higher price than the Order price. On a Sell Order, the Stop Loss level must be placed at a higher price than the Order price, and the Take Profit level must be placed at a lower price than the order price. Note, you do not need to specify Take Profit or Stop Loss levels in order to execute your trade order.
Modifying an open order
If you have already opened a position you can set a Stop Loss and Take Profit on an already opened order by double clicking on the open order in the Trade window. This will open the Order window which allows you to modify the order with a Stop Loss and Take Profit.