Finally, you have set up your MT4 account, let’s learn how to use it!
At first glance, it looks really complicated with so many tabs, windows, and icons. If you go deep it’s easier to use.
Understanding the basics is the main point. This article focuses on all about setting order in MT4.
Ready? Let’s begin with the question: How to set stop loss and take profit in MT4?
There are two ways to set SL and TP in the MT4 platform. First, do it manually by dragging the price line to the limit where you want to set stop loss. Similarly, for take-profit, you can drag the price line to the point where you want to lock the profit. Secondly, you can set both by putting SL and TP values and clicking on the modify button. The SL should always be set a little bit higher to the margin call.
If a trader sets inappropriate values he receives message invalid SL and TP. Keep reading to know step by step procedure of setting SL and TP.
What Is Stop Loss & Take Profit
Stop-loss and Take profit can be written as SL and TP.
These are two types of limit order. The main purpose of setting is to close the trade automatically when the price reaches that level. By setting this, traders can minimize losses and risk factors.
The Stop-loss feature restricts price to a certain level where the trades stop automatically. Take profit is another feature that locks the profit to a certain level where you desire to close your position.
One main benefit of SL is to prevent margin calls and liquidation of the open position. That’s why it is set higher than the margin call level.
Another benefit of SL and TP is that traders don’t need to close the trade manually. It helps with market gaps. In this scenario, traders need not worry about sitting in front of the screen all the time. They can do their routine work after setting SL and TP.
Traders need to understand the basics of the market before setting SL and TP. In share markets, traders need to be careful before setting SL and TP as this market gaps over 1% from secession to session. If traders set the S/L order and the market opens below the set price limit, this can lead to large losses.
How To Set Up Stop Loss And Take Profit In mt4:3 Steps
It’s a pretty straightforward process to set up SL and TP in mt4. By following the 3 simple steps given below, traders can set up these features:
Step-1 Setting Of SL & TP From Oder Window
You can set up SL by modifying the trade in the order window. Follow the steps below:
- Open the order window and start filling the required column.
- Put Volume ( lot size) you want to trade and
- Click on the arrow of the SL and TP field
- The Current price will open, adjust the price level as you desire
- For wrong setting or too close setting of TP and SL, the window will show Invalid TP or SL
Step 2: Calculation of SL & TP
How to calculate SL and TP for any instrument you want to trade in mt4? To do so follow the steps below:
- Go to the instrument you want to trade
- Choose the specification field from the context menu
- A new window will open showing specifications of SL and TP for the instrument
- Submit the order and you will get confirmation of successful placement.
Step 3 Modification of SL & TP
If you have placed an order already, you can modify SL and TP according to the market situation.
Below are the steps to follow if you want to modify SL and TP:
- Open the terminal window from the trade tab.
- Do right click on the trade, choose to modify, add or delete trailing stop
- Choose Modify Delete Order from the trade menu
- Modify window will open where you can modify orders
- Find Stop Level and Copy as Button in blue red
- Copy the current price into SL and TP fields
- For invalid numbers, the Modify button will turn grey
- Do changes and submit again
- New SL and TP levels will be displayed on the chart
To modify it you can also use SL and TP lines on the chart. It is easier than the above method.
How Do You Set a Stop Loss & Take Profit On MT4 On Window
There are two ways of setting SL and TP on MT4 on windows. The first way is by adding value manually by dragging your orders. For this, drag the order line to the price level where you want to set SL and TP based on your analysis.
To set take profit do the same procedure but in the opposite direction of the stop loss. Drag the entry line to your desired profit level and set it accordingly.
The second way is to set stop loss and take profit by entering the values of your order. To do so right-click on your order and choose “modify order”. Now put the values of SL and TP and click the modify button. The SL and TP lines will be set on the chart according to the values you placed.
How To Set A Stop Loss And Take Profit On iPhone, Smartphone, or Androids
It’s pretty simple to set SL and TP for iPhones and smartphones. Follow the steps below to set TP and SL on android or smartphones:
- First, go to the trading platforms
- Select Modify
- Enter the values of SL and TP manually
- After this click Modify again
- SL and TP will be updated
Frequently Asked Questions
How do I set stop loss and take profit on Metatrader 4?
There are usually two ways that I use to set up SL and TP in MetaTrader 4. One is to set the SL and TP lines on the chart directly. Another is to put values of SL and TP in the modify window to set up the values.
How do you calculate stop loss and take profit in MT4?
To calculate stop loss and take profit in MT4, the following formulas are used:
- Take Profit = opening price + price change in points.
- Stop Loss = opening price – price change in points.
How do you place a stop loss and take profit?
Traders normally place the values of both dragging chart lines to the desired value directly. They drag the SL line to the limit where they want to close the position.
Similarly, they would drag the TP line to the limit where they want to lock the profit. The other way of setting both values is to put the values directly to modify the order option.
It’s not just maths to set SL and TP. It requires a strong command of technical analysis and market study also. To set them properly understand the phenomenon of margin calls set by your broker also.
If you are an expert in setting these you can minimize risk. It will also make you conscious when you are close to losing all money from your margin account.