A stop loss (SL) automatically closes a trade once it loses a set amount; a take profit (TP) closes it once it reaches a target gain. Both are core risk-management tools, and in MetaTrader 4 you can add them when you open a trade, or to an existing one. Here's the quickest way — on a trade you already have open.
Set SL/TP on an open trade
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Open the Terminal's Trade tab
Press
Ctrl+Tto open the Terminal panel, then click the Trade tab. Your open positions are listed there. -
Open the Modify window
Right-click the position and choose Modify or Delete Order (or double-click the trade).
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Enter the Stop Loss and Take Profit prices
Type the price levels. On a Buy, the Stop Loss sits below entry and Take Profit above; on a Sell, the reverse.
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Click Modify
Click Modify. The SL/TP are now stored on the broker's server and will close the trade automatically if hit.
Set them when you place the order
On an Instant Execution account you can set both upfront: in the order window (press F9),
fill in the Stop Loss and Take Profit fields before you click Buy or Sell. On a
Market Execution account (such as XM) those fields are disabled at order time, so open the trade first
and use the method above. A third option, once the trade is open and its lines show on the chart, is to drag the
position's own price line up or down — drop it above or below your entry and MT4 sets it as a Take Profit or Stop Loss.
Where to put your stop loss and take profit
- Buy (long): Stop Loss below your entry, Take Profit above it.
- Sell (short): Stop Loss above your entry, Take Profit below it.
- Mind the minimum distance: brokers enforce a "stops level", so a level too close to price is rejected as "Invalid S/L or T/P".
Many traders place the stop where their trade idea is clearly wrong (beyond a recent swing high/low) and size the position so that distance equals a small, fixed share of the account — see the lot-size calculator and our stop loss and take profit definitions.
Limitations
A standard stop loss triggers a market order at your level, so in fast markets or weekend gaps it can fill worse than expected (slippage). It reduces risk but isn't a guaranteed exit. Position sizing and a stop are tools, not financial advice — and most retail traders lose money. Practise on a demo first.
Practise orders on a free demo
Open a free MT4 demo and rehearse setting stop losses and take profits with virtual money before risking real funds.
⚠ Trading forex and CFDs is high-risk and most retail traders lose money. This is not financial advice.
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Related
New to ordering? See how to place a trade and MT4 pending orders. To move a stop automatically as price runs your way, use a trailing stop. Back to the basics: how to use MT4.
Frequently asked questions
How do I set a stop loss and take profit in MT4?
Open the Terminal (Ctrl+T), go to the Trade tab, right-click the position and choose 'Modify or Delete Order', enter your Stop Loss and Take Profit prices, and click Modify. You can also set them in the order window when you first place the trade, or by dragging the position's line on the chart.
Why can't I set my stop loss — it says 'Invalid S/L or T/P'?
Your level is too close to the current price. Every broker enforces a minimum 'stops level' (a set distance in points), so a Stop Loss or Take Profit inside that band is rejected. Move it further from the market price, or check the symbol's stops level in its specification.
Does a stop loss guarantee my exit price?
No. A standard stop loss triggers a market order at your level, but in fast-moving markets or over weekend gaps it can fill at a worse price — that's slippage. It caps risk in normal conditions but is not a guaranteed price. Some brokers offer a separate 'guaranteed stop' product, usually for a fee.
Do stop loss and take profit work when MT4 is closed?
Yes. Unlike a trailing stop, a standard SL and TP are held on the broker's server, so they keep working even if your MT4 terminal or computer is switched off.
What's the difference between a stop loss and a take profit?
A Stop Loss closes a losing trade to cap your loss; a Take Profit closes a winning trade to lock in a gain. Both are exit orders you attach to a position — the SL on the losing side of your entry, the TP on the winning side.
Trading foreign exchange and contracts for difference (CFDs) carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. You could lose some or all of your deposited funds; do not trade with money you cannot afford to lose. Past performance is not indicative of future results. Nothing on MT4Download.com is financial, investment, or trading advice. Consider your circumstances and seek independent advice if needed.