Stop-Limit Order: What It Is and Why Investors Use It
Stop-Limit Order: What It Is and Why Investors Use It
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TP (Take Profit) and SL (Stop Loss) are predefined exit rules in a trade. Their purpose is risk control, not prediction. Stop Loss (SL) A stop loss defines the maximum loss you are willing to accept before entering the trade. If price reaches this level, the position is closed automatically. Benefit: Caps downside risk, prevents small losses from becoming catastrophic, and removes emotional decision-making during volatility. Take Profit (TP) A take profit defines the price level where gains are
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