How to use the MetaTrader4 platform: Open position management

Rational position management is the basis of profitable forex trading and the only way to avoid unnecessary losses. Regardless of the strategy you choose, the final result will depend on whether you are able to make a loss if the market goes against your expectations and whether you exit the market (make a profit) when the price reaches the level you set. For this, take profit and stop loss orders will be extremely helpful.


In this video, we will show you:

  • how to set up a take profit order
  • how to set a stop loss order
  • how to modify an open position

Stop loss and Take profit in MT4

Stop loss (SL) is a type of order that tells the broker to automatically close the order when the price drops (in the case of a buy order) or rises (in the case of a sale) to the level we indicate.

Take profit (TP) is an order that tells the broker to close the order when the price reaches a certain profit level.

Avoid loss by moving SL
You can specify TP and SL levels both when you place your order, but also later in the trade, even when the position is already open. A popular method of risk management is to move the stop loss level to the so-called "Break even", ie the level of opening a position when the result of the position is already positive, but is still within a certain distance from the take profit level. Such a procedure ensures that even if the market turns against our position, we will avoid a loss and the transaction will close with a result of "0".

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.60 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.