Stop losses and take profit levels are used by forex traders to protect them from unnecessary financial risk and also to ensure that profits are taken for successful trades. Stop losses and take profit levels are both orders which are placed in the market to close an open position.
In other words SL (Stop Loss ) indicates a specifice price and when market reaches there ,your trade/trades automatically close the position in loss and your investment can be secure more to face more or big loss and same like TP (Take Profit) is also a specifice prince or point and when market price touches that point and your trade/trades automatically close in some profit . its so necessary to put stop loss and take profit specially stop loss to avoid big loss because if a trader doesn’t use stop loss mean he/she is going to take more risk and if market goes against his/her trades have to face big loss and some time his/her account can be wash too.
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