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Alpari (UK)

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• What is Forex?
  • Intro
  • Spreads and Margins
  • Rollover and Interest Policy
  • Why Trade Forex?
• What are CFDs?
  • Intro
  • Share CFDs
  • Going Long
  • Going Short
  • CFDs on ETFs
• Top 10 Questions
• Top 10 Common Mistakes
• Start Trading with MT4
  • Intro
  • Download MetaTrader 4
  • MetaTrader 4 PC
  • MetaTrader 4 for PDAs
  • MetaTrader 4 for Mobiles
  • MetaTrader 4 Multiterminal
  • MetaTrader 4 User Guide
• Expert Advisors in MetaTrader 4
• Suitability and Risk Warning

MetaTrader 4 Userguide

Stop Loss and Take Profit Orders

• Stop Loss: an order to close a previously opened position at a price less profitable for the customer than the price at the time of placing the order.
• Take Profit: an order to close a previously opened position at a price more profitable for the customer than the price at the time of placing the order.

If you place these types of orders you do not have to sit in front of your computer to wait for the outcome. "Take Profit" and "Stop Loss" orders will be executed automatically as soon as the price reaches order level (see below). You can place Stop Loss and Take Profit at the time of making a deal filling in the "Stop Loss" and "Take Profit" fields in the "Order" window:

How to place Stop Loss and Take Profit orders in the Order window

Afterwards in order to modify Stop Loss and Take Profit levels use the context menu:

The context menu of the Trade tab of the Terminal window

Right-click on the open position or on the pending order in the "Trade" tab of the "Terminal" window then select "Modify or delete order". The "Modify order" window enables:

The Modify Order window

Fill in the "Stop Loss" and "Take Profit" fields. By pressing the red button (in our example "1.2121") you can copy this level into the "Stop Loss" field. By pressing the blue button (in our example ‘1.2096’) you can copy this level in the "Take profit" field. The value in the "Level" field defines the difference between the order level and the current price. Once you fill in the "Stop Loss" and/or "Take profit" fields press the "Modify #position number" button.
The limits for the minimum range between the order and the current price are defined in the Contracts Specifications.

In order to delete "Stop Loss" or "Take Profit" orders, specify its level as equal to zero.
‘Stop Loss’ and "Take Profit" orders are executed in the following cases:

• The "Take Profit" order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or higher than the order level.
• The "Stop Loss" order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or lower than the order level.
• The "Take Profit" order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or lower than the order level.
• The "Stop Loss" order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or higher than the order level.

The order will be executed if at least one quote in the quotes flow reaches the order level. Please note, that in MetaTrader 4, charts are created using Bid prices. So:

• Minimum Ask price is equal to the minimum bar price (Low) plus spread.
• Maximum Ask price is equal to the maximum bar price (High) plus spread.
• Minimum Bid price is equal to the minimum bar price (Low).
• Maximum Bid price is equal to the maximum bar price (High).

Important: If, under abnormal market conditions, the order level falls within the price gap, Alpari (UK) has the right to execute the order at the Bid or Ask price (depending on order type) of the first obtainable after the gap quote.

© 2004-2009 Alpari (UK), LTD