Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

What is the difference between a stop-loss and take-profit order?

If the price you are trying to set on your order to open is better than the current market, you will need to place a take-profit order. This will only execute if the market price is at this limit or better. If you are attaching a limit as a take profit level then this logic also follows, ie the position will only close if this limit price or better is reached.

A stop-loss order will be placed if the level you are trying to execute is worse than the current price. If the level is breached, your order will be traded at market irrespective of the price. You can therefore be filled at a worse level than you requested. If you are attaching a stop-loss to a position as a close condition and it’s triggered, there is a chance it will be filled at a worse level.

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