Stop Loss (SL) and Take Profit (TP) are risk management tools used to automatically close a trade at predefined price levels.
- Stop Loss (SL): This sets the maximum loss you are willing to accept on a trade. If the market moves against your position and reaches the SL level, your trade will be closed automatically to limit your loss.
- Take Profit (TP): This sets the level at which you want to secure your profit. Once the market reaches the TP price, your trade is closed automatically, locking in your gains.
Using SL and TP helps traders manage risk, plan their trades, and avoid emotional decision-making during fast market movements.
