How to add stops and limitsLast Updated: May 31, 2019
Stops and Limits are recommended trade settings to be utilized for proper equity management and is a best practice for trading.
A stop is defined as the amount that is willing to be risked in a trade before exiting the order and accepting the loss.
The Objective of a stop is to prevent from taking a large loss and persevering your equity.
A Limit is defined as the amount that is looking to be captured for profit. The limit is often defined as the target or goal price on which the trade is hoping to meet.
The Objective of a Limit is to capture a trades profit when the rate hits a valued price in the market that the trade was hoping to accomplish.
Rules to adding Stops and Limits to an order.
- When adding a Stop to a buy order the stop must be placed below the current price.
- When adding a Stop to a sell order the stop must be placed above the current price.
- When adding a Limit to a buy order the Limit must be placed above the current price.
- When adding a Limit to a sell order the Limit must be placed below the current price.
How to add a Stop
Adding stop using the right Trading Panel
Expand Right panel and set up a market or pending order.
After setting up order select the toggle below the price action buttons that says Stop.
- Select Radial button next to Rate Value to enter in exact rate that you wish to place your stop.
- Or Select Radial button to the right and enter in the total pip value willing to risk before closing the trade.
Select the Buy/Sell action buttons in right panel now to place trade with the assigned stop value.
Adding stop using the Trading Widget
Open trading widget from the right trading panel.
Set up Instrument, Lot Size and confirm you have the correct broker selected.
Select double arrow in bottom right corner of widget to expand stop and limit options.
Enter in the total pip value willing to risk before closing the trade.
Select the Buy/Sell action buttons in widget to place trade with the assigned stop value.
Adding stop by right clicking on a chart.
Right click on chart and select place order.
Select Market or Pending Order
Select Buy or Sell along with Instrument, Lot Size and confirm you have the correct broker selected.
Check the box next to Set Stop/Limit to add a Stop
Stop should be toggled on, if not enable Stop toggle.
Turn of Limit toggle if not entering a limit.
Enter Rate desired to close out order if trade looses too much or enter in pip distance the stop should be entered from the current market price.
Confirm correct account or accounts are selected.
Select place order with the assigned stop value and confirm request to place order.
Modifying a Stop.
Expand Order Info Panel located at the bottom of SmartTrader Charts.
Locate open order or pending order in Positions and Pending Orders tab.
Locate order to modify the stop and select the SL (Stop Loss) cell for that order.
Enter in New Rate or Pips for Stop location.
Select OK to complete modification of Stop.