If you’re a beginner in the world of trading and started using SL or TP feature for the first time, you might have encountered this error Invalid S/L or T/P.
This post will help you to understand why this error occurs and what can help you to fix it.
S/L stands for Stop Loss or Stop Order Or Stop Market Order; it refers to a type of order where traders use price limits to avoid losses in trade.
Similarly, T/L stands for Taking profit Or Take Limit Profit; it refers to a type of order where the trader limits the profit of the pending order up to the specific predicted price.
Invalid S/L or T/P is an error that occurs when traders fail to choose the correct position to limit open order loss and profit, respectively. They chose non-realistic numbers where it is impossible to hit the price with respect to the entry price. Also, when traders choose a position too close to entry-level and add wrong digits, it mainly occurs.
If you are setting S/L and T/P ask your broker about the terms and conditions. It is observed that some brokers have different S/L and T/P requirements according to spread. Professional traders count pips to know the right position of Stop Loss with respect to entry-level.
What Is An Invalid S/L Or T/P
Invalid S/L and T/P is a common error of the Mt4 & Mt5 platform that occurs when you count wrong pips with respect to the entry position or current position while setting both orders.
Technically in forex, the minimum distance of Limit order from entry price should be 6pips away. One more thing that makes S/L invalid is when you write digits after or before points wrong.
In CFDs and Stock, the minimum distance of Limit Order from entry Price should be 10 Pips or more than 10 pips. It can happen both in the forex and stock market. So, it is important to clearly understand this error before putting it. You can’t proceed or open your order if you encounter this error, and it’s really bothersome.
Reasons For Invalid S/L & T/P
Usually, brokers are asked about invalid Stop Order and Take Profit issues most of the time. When traders fail to understand the actual reason behind this error they can’t fix it.
Below are some common reasons for these errors; let’s check out
1-Wrong Measurement Of Pips
Most traders measure Pips using an indicator called crosshairs. This indicator is located from the second button left to right in the toolbar. The problem with this indicator is that it measures the middle three numbers. Technical traders need to be 6 pips away from the current market price to set SL or TP price.
2-Wrong Digit Addition In SL/TP Setting
When traders are in a hurry they fail to type or format the price digit incorrectly. Sometimes they place points in the wrong position. When they do so, the software of Mt4 cant interpret the data and give you an error of invalid SL and TP
3-Inability To Understand Market Price
The most important point is clearly distinguishing between the current market price and the Entry Order price. To set Sell Stop or Buy Limit, the market price should always be ABOVE the entry price. Similarly, to set Buy Stop and Sell Limit, the market price should always be BELOW the entry price.
4-Fail To Understand Broker Condition
Before you start trading with a broker, you should read the terms and conditions carefully on the broker’s website. Technically most of the brokers pre-set the trading platform to give invalid SL and TP errors if you fail to put it away from 6 pips in forex and 10 pips in CFDs or stock.
Brokers always keep the spread rate in mind. So if your SL and TP limit is not covering the spread fee of the instrument, it will obviously give an Invalid error.
5-Ending Digit In SL & TP Must Not Be 0 Or 5
It is a handy tip to take care of SL price and TP price, not to end with 0 or 5 digits. It should end with 2,3,4,6,7,8,9, or even 1. Many professional traders recommend that when newbies can’t calculate pips, they should not put the price digits ending with 0 or 5 in the SL box and TP box.
How To Fix Invalid SL and TP Error
By taking a few measures for choosing and typing SL and TP prices, you can avoid this error easily.
Let’s check out the ways to fix this error
Solution-1: Type Digits Carefully
This problem mainly occurs when traders format digits incorrectly in SL and TP boxes. The easy solution is to recheck the digit and point position and then confirm the order. Sometimes they miss one or more digits.
Solution-2: Initially Place Trade Without SL $ TP
This solution comes in handy when nothing works to fix this issue. Traders should initially place orders without SL and TP, and after some time, they should set it by dragging the level line manually. This solution is workable for trade at the market Limit Price.
For pending trades, it will not work.
Solution-3: Trader Should Use Mobile Apps
If nothing helps to solve this problem from Laptop and Windows, traders should try SL and TP from the mobile app. It will surely help. Mobile Mt4 app will open SL and TP trade without showing an invalid error
Solution-4: Check Log File
Traders should keep an eye on Log files to check for other errors along with Invalid SL and TP error. They can find “log file”under the “Journal” in the terminal. When you tap right-click here the log file folder will open, and you get info about other errors as well
Solution-5 Install the Latest Version Of Mt4
If you’re working on an old version of Mt4, you will encounter different issues with time. So the better solution is to uninstall the old version and download the latest version. It will work well or give fewer errors
Solution-6 Ask The Broker
Almost all brokers have customer support agents. If you are facing this issue with almost all open orders, it’s time to ask the broker, he will better help you. If you find the broker culprit of this, change it immediately.
Why are my SL and TP invalid?
Invalid SL and TP are due to choosing the wrong limit for stopping orders or adding the wrong digits of price. Other reasons for invalid SL and TP errors include both conditions, spread cost, and 5 or 0 ending digits in price setting.
What do SL and TP mean?
SL stands for stop Loss, while TP stands for Taking Profit. Both are types of order in which trade limit the trade to close when hitting a specific price. The basic purpose of this type of trade is to save accounts from being wiped off in pending entries.
What is the entry SL TP?
Entry Stop loss means the price limit entered by trade in order to stop the trade from losing more. In the same way, entry TP means the price limit entered by trade when desired profit is hit. Both work automatically to close the trade.
In short, invalid SL and TP is an errors of mt4 that can be fixed by following the solutions given in the post. To avoid this error, traders would type the price digits correctly. He should also take care of the terms and conditions set by the broker in order to place SL and TP.
This type of error is most common with the old version of mt4. So, it is recommended to download the latest version. If nothing works, it’s time to change your broker as soon as possible.