How to set Stops and Limits

Ben Weiss, Friday, 26 April 2019

Stops and Limits

The value of stops and limits should not be underestimated. They’re both vital tools in your risk-management arsenal, and on our award-winning TraderPro platform, setting stops and limits is very simple. So here’s our quick and easy five-step guide on setting stops and limits on TraderPro.

If you have a stop loss or trailing stop loss attached to an order to open a new position, and in the event that the new position is executed at a different price than requested, the level of the original stop loss will remain in place and needs to be moved manually if required. This will not automatically adjust to reflect the PnL/points away risk from the execution price.

The 'points away' and 'PnL' tools on the stop loss ticket are only to be used to help assess a desired stop loss level. The trailing feature will only activate from the original stop loss level. Stop losses can be amended as often as you like. All orders including stop losses could be subject to market slippage.


Overview - How to set stops and limits 

1. Open a trade ticket for your selected market.
2. Select the box for either limit, stop or both, and type in what price you want it at.
3. Select 'Buy' or 'Sell' which will open a position with your limit/stop in place. 
4. To edit or open a new limit/stop on an open position, select 'Add Limit' or 'Add Stop' from the Open Positions tab. 
5. Edit existing stops or limits, or add new ones by adjusting the 'Pts' or 'level' boxes.
6. A new trade ticket will confirm the amendments. 

What is a stop?

A stop is a risk management tool that can be applied to open trades. Its purpose is to help you protect potential losses should the market turn against your position. Stops are set at a certain level and once the price of an asset falls to that level, the stop will be executed and your position closed. 

One thing to note, however, is that regular stops may not always be executed if there's slippage or gapping.

What is a limit?

A limit is similar to a stop in that it closes a trade at a certain, pre-set price level, but the difference is that a limit is place at a level that's higher than the current price. 

A step-by-step guide on how to set stops and limits

1. First, you must choose a market that you want to open a position on. To do this, either click on the 'Popular Markets' tab on the left-hand side of the platform that will display our most traded markets, or use the search bar to type in a market. Simply click on the market when it comes up in the search list and then a regular trade ticket will open up.

Step 1 - Stops and limits

2. Tick the box next to ‘stop’ or ‘limit’ depending on whether you want to set a stop, limit or both. Then just choose how many points (Pts) you want the price to change before the stop or limit is applied by using the arrows in the Pts box. Your profit or loss will be displayed in the ‘PnL’ box as you adjust your stop or limit.

If you're setting both, they do not have to correlate with one another. What is meant by this is that a stop could be placed just five points below the current market price, and a limit could be applied to the same position 1,000 points above the current market price. 

Step 2 - Stops and limits

3. Depending on whether you want to go short or long on the selected market, click ‘BUY’ or ‘SELL’ once you have set your stop and limit, and you should see a confirmation trade ticket displaying ‘New Trade Successful.’ Your position is now open, and your trade will be live until either the stop/limit is executed, or you close the position manually.

Step 3 - Stops and limits

4. If you want to apply a new stop or a limit to an existing open position, or you want to amend an existing stop or limit, simply go to the ‘Open Positions’ tab and select ‘Add Stop’ or ‘Add Limit.’ Open Positions can be found by clicking 'Activity' at the top of the platform and selecting the first option in the drop-down list, which is Open Positions. 

You can then add a new stop or limit. To change an existing stop or limit, simply click on the price of the existing stop or limit, in this image below it would be 657.18, and a trade ticket will open up. They can then be adjusted accordingly. 
Step 4 - Stops and limits

5. Use the ‘Pts’ box to adjust/set the new stop and limit to your position. Select ‘Amend’ when you have finished. This can be changed as many times as required, so if a market suddenly moves drastically your the stops and limits to be amended accordingly. 

Step 5 - Stops and limits

6. A trade ticket will show confirming the stop/limit has been successfully set. At that point, the position will be open until manually closed, or until a stop or limit is executed. 

Step 6 - Stops and limits

**To remove an existing stop or limit, simply click on the stop/limit on the ‘Open Positions’ tab on the platform and deselect either the stop or limit box. Then click ‘Amend.’

Why set stops and limits? 

Stops and limits are valuable tools that are offered free of charge, so why not use them? They will protect you from suffering potentially huge losses should the market turn against you and can ensure profit is secured even when you aren't actually trading on the platform.


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