What is a Take Profit order?
A Take Profit order allows you to specify a price at which your orders will execute and close when the price is moving in a favorable direction. This helps you increase the chances of closing out a position while ensuring a profit. Take profit order is useful as:
A risk-management tool to ensure a minimum amount of profits on existing positions.
An automatic tool to exit the market at the desired price without manually waiting for the market to place the order.
What is a Stop Loss order?
A Stop Loss order allows you to specify a price at which your orders will execute or close when the price is moving against you. This helps you limit the maximum amount of loss you are willing to experience. Therefore, Stop Loss Orders allows you to specify trigger price but the order will be executed in the market.
Stop loss order is useful as:
A risk-management tool to limit losses on existing positions.
An automatic tool to enter the market at the desired entry point without manually waiting for the market to place the order.