To trade on XM you need to be sensitive to stop loss and take profit. This is because if you don’t know where to cut losses and where to take profits, you will end up with endless positions. There is no such thing as a 100% win rate in Forex orders. If you do not manage risk properly, you will be asked to leave the world of Forex.
MT4 and MT5
You can use MT4 and MT5 with XM. Each tool allows you to set stop loss and take profit. If you are interested, please take a look at it for reference only. You can also do limit orders and stop orders, and there are quite a lot of indicators. This is an essential tool for overseas FX brokers.
Stop loss means “stop loss”. In MT4/MT5, which is the trading platform of XMTrading, it is written in English as “S/L”. Stop loss refers to fixing the loss by settlement. You can specify this yourself, or you can automatically set a stop loss based on the value of pips, which is a common unit in the FX world. With XM, operation settings can be made in easy-to-understand detail even for automated trading.
Take profit is the opposite of stop loss, and refers to “profit taking” that locks in profits. Take profit is expressed as “T/P”, and like stop loss, it can be done manually or automatically by specifying the unit from pips. You can set a market or limit price, and when the price is reached, you will make a profit.
Meaning of setting in XM Trading
Judging stop loss and take profit is important in trading. On the other hand, it is obviously a hassle to manually settle while looking at the chart every time pips reach a certain level. If you do not set these, you will end up holding a position forever, and in the worst case scenario, you will lose all of your principal. Therefore, deciding where to win or lose is a very important point. If you make a prediction and enter using your own method, the payment will be settled after a certain amount of time. This setting is also possible in the app.
Utilize the functions of MT4/MT5
Make full use of the features of MT4 or MT5 to earn with XM. If you enter the stop loss and take profit values, they will be automatically settled when the chart moves. You can set the price when placing a new order or even after placing an order. If you learn “stop loss” and “take profit”, you can quickly set up entry and loss cut. And even if there is a sudden fluctuation in the market price, it will automatically settle, so the risk can be minimized. Effective use of Stop Loss and Take Profit can increase profit margins and reduce unnecessary losses.
How to set up MT4/MT5
This is the order screen when viewed on a smartphone. ① is where you enter the stop loss value, and ② is where you enter the take profit value. For example, for a stop loss when placing a buy order, enter a value lower than the current buy price. Conversely, if you set a take profit with a buy order, you must enter a higher value than the buy price.
When is the best time to set?
Stop Loss and Take Profit can be set at any time. For that reason, some people may be wondering when to set it. I will explain the timing here. In conclusion, it is a good idea to always set stop loss and take profit when entering. Even if there is a sudden fluctuation in the market price, it will be automatically settled, so the risk can be minimized. There is a function that automatically pays, so there is no reason not to use it.
left after entry
Like any trader, I don’t think I have enough free time to keep looking at the chart from the time I enter to the point where I take profit. Therefore, by setting the stop loss and take profit properly at the time of entry, you should be able to leave it alone and do something else after that. Even full-time traders don’t always look at charts. In the meantime, you should be able to enter on another chart or perform market analysis. With the knowledge you need, you can easily earn big profits from your investments.