EXIT ORDERS STOP-LOSS: The glorious stop loss is what saves our lives. It is neither more nor less than an order which automatically take us out from the markets if the price goes against us. In other words, we give the order to delimitate a loss limit to protect our capital. A useful tip is always to use a stop-loss. The stop-loss reduces the emotions of fear and stress of trading. Example of Buy: Suppose we buy EURUSD quoted at a price of 1.50. We expect that the price continues to rise, we put our stop loss below our entry price at 1.30. If the price falls and reaches 1.30 and touches our stop-loss, our loss will be cut. Example of Sell: Suppose we sold EURUSD at 1.50. We expect that the price continues down, we put our stop loss above our entry price at 1.60. If the prices go up knowing that we expected it to decrease. The price will touch our stop-loss and our loss will be cut.
TAKE-PROFIT: The take-profit is the opposite of the Stop-loss It is nothing more and nothing less than an order which automatically take us out of the market if the price is going in our favor. In other words, we give the order to delineate a limit profit. This allows us to take profits automatically. PIP: (PERCENTAGE IN POINTS) A pip is the minimum change in a financial instrument of in the Forex market. All pairs present on the forex are evaluated with 5 digits, the only exception is for those of the Japanese yen. For example for EUR / USD in the left image, quotations displayed is 1.1392 (1). However, in the right image the value of EURUSD is 1.1381 (5).
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