Managing risk: stop-loss, take-profit and alerts

Every trade needs two answers before it is placed: where am I wrong? and where will I take my profit? WebTrader lets you attach both to a position.

Stop-loss

A stop-loss closes your position automatically if the market moves against you to a level you choose.

• On a buy, the stop sits below the current price.
• On a sell, it sits above it.

Set it where your idea is proven wrong — not at a random distance. You can add, move or remove it at any time from your open positions.

What a stop-loss cannot do: it is not a guaranteed price. If the market gaps — at a weekend or market open, or on sudden news — your position closes at the first available price, which can be worse than your stop.

Take-profit

A take-profit closes your position automatically when the market reaches your target, locking in the gain. It sits above the price on a buy and below it on a sell.

Price alerts

Not ready to trade? Set a price alert on any market and you will be notified when it crosses your level — useful for waiting for an entry without watching the screen.

Pending orders

Instead of trading at the current price, you can place an order to open a position only when the market reaches a level you choose:

• Limit orders enter at a better price than now — buy below, sell above.
• Stop orders enter when the market breaks through a level — buy above, sell below.

Habits that help

1. Risk a small, fixed share of your account on each trade.
2. Always set a stop-loss before (or immediately after) you open a trade.
3. Watch your margin level, shown live on WebTrader.
4. Be careful around market opens and major news, when gaps are most likely.
5. Never add to a losing position just to average down.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Only trade with money you can afford to lose.