Mobile phones apparently play an important role for merchants. MT4 mobile apps are often used by many people to trade, track orders and monitor charts, which gives traders convenience and effectiveness in trading. This guide shows you how to set Stop loss (SL) and Take profit (TP) on MT4 mobile when you open a new trade or adjust an existing position.
How to set Stop loss & Take profit for new orders
To set a stop-loss and take profit for new orders on MT4 mobile phones, after browsing the “Quotes” tab -> selecting the -> tool by tapping “New Order”, you will see a popup window as shown below:
Then you need to fill in the Stop Loss or Take Profit details in the SL and TP fields as a preference.
Note: If your Stop Loss or Take Profit is set too close to the current price, you will see the “Invalid S/L or T/P” notification.
How to set Stop loss and Take profit for open trades?
In case you want to add or change Stop loss and Take profit for existing positions, follow the guide below:
- Go to the “Trade” tab and you will see all the open trades.
- Tap and hold the open position you want to add Stop loss and Take profit. A new pop-up window will appear.
- Select “Edit”. You will then be asked to enter your stop loss or take profit.
- Once done, tap on “Edit”.
Why should you set up SL & TP?
To minimize risk or maximize potential profit, traders often use Take profit and Stoploss orders when placing trade orders.
Stop Loss (SL) and Take Profit (TP) are limit orders that precisely set the price level at which a position is automatically closed to avoid losses or lock in profits. However, they are used in different ways. Specifically
The Stop Loss is used to manage the level of risk for the investment amount, to avoid excessive loss of investor tolerance.
The stop loss order will take effect when the loss reaches the predetermined stop loss price. The stop loss price is the price you have previously set and will be executed in case the price trend goes against your prediction.
For a long position, the stop loss price is lower than the current market price. In contrast, the stop loss price is higher than the current market price for a short position.
Before placing a stop loss order for a particular trade, you should consider how much loss you can accept for that particular trade.
For example, if you place a stop loss order in the amount of $3.7 for a purchase trade. If the total value of the investment for this security loses $ 3.7, the order will be closed automatically. This helps to reduce the risk in case the price drops deeper and the amount of the loss is higher.
Take profit is used to automatically close a trade at a specific rate that you are happy to close an order for a profit. When the trade is profitable and reaches the previously set price, the trade will be automatically closed.
For a long position, the take profit is higher than the current market price. In contrast, the take profit is lower than the current market price in a short position.
To sum up, deciding when to exit a profitable trade is as important as deciding when to exit a losing trade because it affects how profitable you are in the long run.
Using SL and TP, traders no longer worry about getting stuck on their computer waiting for a specific price to manually execute trades.