Exiting a Trade
Closing a Trade with a Market Order
To lock in your profit, you should close your position with a market order. A position can be closed fully or partially.
Full Close
To close the position fully, click on the rightmost Close button, located in the Trading Toolbox. That will exit your trade and lock in your profit.
Otherwise, press “Close #xxx” in the position modification dialog, where the #xxx is the position ID.
Partial close
To close the position partially, press “Partial Close #xxx” in the position modification dialog, where the #xxx is the position ID (shown on a picture above).
Setting a Stop Loss to Avoid Excessive Losses
What is Stop Loss
If you want to limit your potential losses in case the price moves in an unfavorable direction, you should place a Stop Loss order. In fact, a Stop Loss is an instruction for a broker to close a position when the price reaches a certain level. It functions as a protective order that is attached to a position.
Why is Stop Loss Important
Stop Loss is an optional order. Of course, you can monitor your positions on your own and can close or modify them manually whenever you want. However, this approach has several disadvantages: It is difficult for you to be in front of a computer all the time, and there can be internet connection losses. Stop Loss order is designed to mitigate these risks. When you set a Stop Loss order, it is stored and executed on the broker's server.
How to Set a Stop Loss Order
There are several ways to set a Stop Loss order.
To place a Stop Loss for an existing market position, right-click a particular position and choose “Set S/L” in the position modification dialog.
When opening a new position, simply specify the Stop Loss price in the New Order tab.
A Stop Loss can also be set for pending orders. When a pending order is filled, an opened position will inherit a Stop Loss price specified in the pending order.
Setting a Take Profit to Lock In a Desired Profit
What is Take Profit
If you want to lock in your profits in case the price moves in a favorable direction, you should place a Take Profit order. In fact, a Take Profit is an instruction for a broker to close a position when the price reaches a certain level. Take Profit functions as an additional order attached to a position or a pending order.
Why is Take Profit Important
Similar to Stop Loss, a Take Profit order is optional. You can monitor the profitability of your positions on your own and can close them manually. However, when a Take Profit order is set, it is stored and executed on the broker's server automatically.
How to Set a Take Profit Order
A Take Profit order can be set in two ways.
To place a Take Profit order for an existing market position, right-click a particular position and choose “Set T/P” in the position modification dialog.
When opening a new position, simply specify the Take Profit price in the New Order tab.
A Take Profit can also be set for pending orders. When a pending order is filled, an opened position will inherit a Take Profit price specified in the pending order.
