At its most fundamental Eastforexcashback, forex trad East forex cashbackg involves opening cashbackforexbtc closing positions for the purpose of generating profits While most forexcashbackcalculator focus on finding profitable points to open new positions, smart traders recognize that knowing when to close a position is just as important to the long-term profit and loss profile of a trading account pre-determined profit understanding points cashback forex help traders significantly reduce the risk involved in forex trading At times, traders may become emotional in their trading and fail to close positions at the right level, incorrectly expecting the market to shift in their favor when it moves against their predictions or predicting that the market will continue to move in their direction when they are following a profitable trade. There are two automated tools that prevent traders from losing good exit opportunities, both of which are available on FXTMs platform Stop Loss Orders As the name suggests, Stop Loss Orders help traders exit unprofitable trades early, so that traders minimize their losses when the market moves in an unfavorable direction Traders can set exit points at any level With a stop-loss order, traders can not only minimize their risk, but also reduce the stress they face because they can rest assured that they will not lose further trading capital Traders who are long (buying a currency in anticipation that its value will rise, and then selling at a higher price) can exit at a level lower than the markets current level. ) can set a stop-loss order at any price below the current level of the market On the other hand, a short trader (who sells a currency in anticipation that its value will fall and then buys it back at a lower price) will want to set a stop-loss order at a price above the current market level How much higher or lower than the current level depends on each traders risk-taking ability A smaller stop-loss will result in a smaller loss A larger stop loss provides more flexibility in the event of a small drop in the value of a currency, which may rebound, but may also result in a larger loss Take Profit Close Orders Take Profit Close Orders, also known as Limit Orders, do the opposite of Stop Loss Orders, setting a ceiling on the automatic closing of a take profit trade Traders should It may sound strange to use an automatic close on a take profit trade, but it is important to remember that the market can change direction at any time. If traders wait too long to close a take profit trade, they may find themselves in a losing position. With an automatic order, the trade will be closed at the take profit level, and the trader will minimize the risk of mood and excitement dominating the trade decision and can better rely on a careful and logical study of the market. Traders who are long can place take profit orders above the current level of the market, and traders who are short can place take profit orders below the current level. It is about those who know how to manage the risks inherent in the Forex market Stop Loss and Take Profit orders are two very important tools that every trader needs to learn in order to reduce the risk associated with holding a position for a longer period of time In short, in Forex trading, timing is crucial