When the price trend is contrary to what we predicted, our order is at a loss. We can choose to set a specified price as a stop loss point. This stop loss point can be based on the technical chart or the investor's own inner stop loss price. When the price reaches the stop loss point, the system will automatically close the position. It is best for investors to set a stop loss position when placing an order to ensure that the loss is minimized.
When the price moves in line with our forecast, our order is in a profitable state. We can choose to set a specified price as the take profit point. This take-profit point can be based on the technical chart or the investor’s own inner take-profit price. When the price reaches the take-profit point, the system will automatically close the position.
So how to set stop-profit and stop-loss? For MT5 software examples, please check:
https://support.seventybrokers.com/hc/en-us/articles/360029194072-