What SL and TP do
A stop loss (SL) is an order attached to your position that closes it when price moves against you to a level you chose. A take profit (TP) closes the position when price reaches a target in your favour. Both sit on the trading server, so they work even when your terminal is closed.
Which price triggers them matters:
- Buy position: opens at Ask and closes at Bid. SL sits below the entry, TP above. Both are triggered by the Bid price.
- Sell position: opens at Bid and closes at Ask. SL sits above the entry, TP below. Both are triggered by the Ask price.
The chart normally shows only the Bid line. On a sell trade, your SL can be hit while the Bid line on the chart never touches it, because the Ask is higher by the spread. To see this, turn on the Ask line in the chart properties (see Chart setup).
How to set SL and TP when you open a trade
In the MT5 desktop terminal:
- Open the order window with the New Order button on the toolbar, or right-click the chart and choose Trading → New Order.
- Pick the symbol, the volume and the order type.
- Enter prices in the Stop Loss and Take Profit fields. Leaving a field empty means no level.
- Click Sell by Market or Buy by Market.
The full order window is covered in Open a trade. The same fields appear when you place a limit or stop order; see Pending orders.
In MetaTrader 4 the order window has the same Stop Loss and Take Profit fields. This is how to set a stop loss in MT4: type the price before you send the order, or add it later with the steps below.
How to add or change SL/TP on an open position
- Open the Toolbox panel and go to the Trade tab.
- Right-click the position and choose Modify or Delete. Double-clicking the position also opens this window.
- Type the new Stop Loss and Take Profit prices and click Modify.
To remove a level, clear the field and confirm.
How to drag SL and TP on the chart
You can set TP and SL in MT5 straight from the chart:
- Make sure trade levels are visible: Tools → Options → Charts, tick Show trade levels.
- Click and hold the entry line of your position, then drag it up or down. When you release, MT5 creates an SL or TP depending on the direction you dragged and which side of the market you are on.
- To move an existing level, drag its line to the new price.
- If a confirmation window appears, check the price and confirm.
MT4 works the same way after you enable Show trade levels in its options. If One-click trading is enabled, changes can apply without a confirmation, so drag carefully.
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Points versus price
The SL and TP fields take a price, not a distance. Distances are measured in points and pips:
- Point: the smallest price step of the symbol, defined by how many decimals it is quoted with.
- Pip: the traditional forex unit. On symbols quoted with an extra decimal, a pip is several points, so "points" and "pips" are not interchangeable.
The number of decimals and the point value for each symbol are in its specification: right-click the symbol in Market Watch and choose Specification. See Contract specifications.
Expert Advisors and the Trailing stop function usually work with distances in points. If a setting asks for points and you enter what you think are pips, the stop will sit much closer than you intended.
To see what a given SL or TP distance means in money and pips before you trade, use the calculator:
Fill in the empty fields to see the result.
What happens on gaps
A gap is a jump in price with no trades in between, common at the weekly open, after news, or on stocks and indices at the session open.
- Stop loss: when price is reached or passed, the stop is sent for execution at the next available price. On a gap, that price can be well beyond your SL. A normal stop loss limits the loss in most conditions but does not guarantee the exit price. This is called slippage.
- Take profit: a gap through your TP can also fill at a different price than set. How it is filled depends on the execution type of the account and the broker's terms, so check the current conditions in the personal area or on the official site.
Check the result of any gap fill in Trade history, where the actual close price is recorded.
Common mistakes
SL inside the spread
If the SL is closer to the entry than the spread, or only slightly wider, normal spread movement can close the trade almost immediately. Spreads also widen around rollover and news. Size your stop with the current and typical spread in mind.
Ignoring the stops level
Many symbols have a Stops level: the minimum distance between the current price and a new SL, TP or pending order. A Freeze level blocks changes when price is very close to an order. Both appear in the symbol specification. A level placed too close is rejected with an error such as "Invalid stops". See MetaTrader errors.
SL on the wrong side
A buy SL above the current Bid or a sell SL below the current Ask is rejected or fills at once. Check direction before you confirm.
Moving the SL further away
Dragging the stop further away to avoid a loss increases the risk you planned to take. Read more in Risk management.
Testing only on a live account
Practise dragging lines and modifying orders on an MT5 demo account before you trade real money.
Leveraged forex and CFD trading can lose money fast, and a stop loss does not remove that risk. For terms used on this page, see the Trading glossary.
Frequent questions
Can I set SL and TP after opening a trade?
Yes. Use Modify or Delete in the Trade tab of the Toolbox, or drag the levels on the chart.
Why was my sell trade stopped when the chart never reached my SL?
Sell stops are triggered by the Ask price. The chart shows Bid by default, so the spread can hit your SL without the Bid line touching it.
Does MT5 let me enter SL in pips?
The order window takes a price. Work out the price from your distance in points or pips, or use the calculator on this page.
Is a stop loss guaranteed?
No. On gaps and fast markets a stop can fill at a worse price than set.
What does "Invalid stops" mean?
The level is on the wrong side of the market or closer than the symbol's stops level. Check the specification and move the level further away.
