A stop-loss is an order placed with a broker to sell an asset when the price falls below a certain point. A stop-loss can be used to protect profits, limit losses, or both.
A take profit is an order placed on a trading platform to automatically close out a position when it reaches a certain level of profit.
Some of the most common reasons for an invalid Stop Loss and Take Profit include:
- Stops are too close to the opening price.
- Stops must be placed 2 pips away from the entry price.
- Stop levels are incorrectly formatted e.g. too many figures/decimal places.
- You may be trying to set your SL or TP level in the wrong place in relation to the current market price.