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Stop Loss and Take Profit
2:22 · 8 chapters · Forex basics, part 10
What you'll learn
Where to put your stop loss and take profit, and why a 1:2 risk/reward only needs about 33% winners to break even.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- Stop where the idea is proven wrong, plus a buffer
- Key point 2
- Never widen a stop; moving it closer is fine
- Key point 3
- Targets just before the next resistance (for a buy)
- Key point 4
- 1:2 risk/reward breaks even at about 33% wins, before costs
- Key point 5
- Slippage and gaps; guaranteed stops at some brokers
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.