Stop loss

A stop loss is a protective order: you set a price at which your trade closes automatically if it goes the wrong way, capping the loss. It’s one of the most important risk-management tools, and using one on every trade is a common rule.

In MT4 you can set a stop loss in the order window when you open a trade, or add or move it afterwards by dragging the line on the chart or editing the position in the Terminal. A trailing stop moves the stop automatically as the trade goes your way.

Pair it with a take profit target, and size positions with our lot size calculator. Learn the order window in how to use MT4.