How to Set Stop Loss and Take Profit Orders in MT5

MetaTrader 5 lets traders attach exit instructions to a position before or after it is opened. A stop-loss closes a position when price moves against it to a specified level. A take-profit closes a position when price reaches a specified favorable level. These instructions help define risk and an intended exit, but they cannot remove trading risk.

Execution is not always available at the exact requested price. During gaps, fast movement or limited liquidity, a stop-loss may be filled at the next available price. Traders should combine exit orders with suitable position sizing rather than treating the stop-loss as a fixed guarantee of the maximum loss.

Setting exits before opening a trade

Steps on MT5 desktop

1. Open the Market Watch window and select the instrument.
2. Right-click the instrument and choose New Order, or press the New Order button.
3. Select the order type and enter the trade volume.
4. Enter the intended stop-loss price in the Stop Loss field.
5. Enter the intended take-profit price in the Take Profit field.
6. Check that both prices are on the correct side of the entry price.
7. Select Buy or Sell to submit the order.

For a buy position, the stop-loss is normally below the entry price and the take-profit is above it. For a sell position, the stop-loss is normally above the entry price and the take-profit is below it. MT5 will reject levels that are placed on the wrong side or too close to the market under the instrument's trading rules.

Steps on MT5 mobile

1. Open the Quotes screen and tap the instrument.
2. Select New Order.
3. Choose the order type and set the volume.
4. Enter prices in the stop-loss and take-profit fields.
5. Review the direction, volume and exit levels.
6. Tap the buy or sell button to submit the order.

Screen labels can vary slightly between operating systems and app versions. Before submitting, confirm each full price carefully. A typing error in one digit can place the exit much farther away than intended or cause the order to be rejected.

Modifying an open position

Exit levels can be added, moved or removed while a position remains open. Changing a stop does not change the position's volume. It changes the price instruction that may close that position.

Modify on desktop

1. Open the Trade tab in the Toolbox area.
2. Right-click the open position.
3. Select Modify or Delete.
4. Enter the new stop-loss and take-profit prices.
5. Confirm the modification.
6. Check the Trade tab to verify that the new levels appear beside the position.

Modify on mobile

1. Open the Trade section.
2. Tap the open position, or press and hold it if required by the device.
3. Select Modify Position.
4. Enter or change the stop-loss and take-profit prices.
5. Confirm the change and verify the displayed levels.

Entering zero in an exit field may remove that instruction, depending on the order screen. Always inspect the position afterward. A submitted change can also fail because the market moved, trading was unavailable or the requested level did not meet the minimum distance rule.

Worked hypothetical example

Imagine a $1,000 account and a hypothetical buy trade entered at 100. The planned stop-loss is 98, while the take-profit is 104. The price risk is 100 minus 98, which equals 2 units. The planned reward is 104 minus 100, which equals 4 units. The reward-to-risk ratio is therefore 4 divided by 2, or 2 to 1.

Assume the chosen position size makes each one-unit price movement worth $5. The planned loss at the stop is 2 multiplied by $5, which equals $10. The intended gain at the target is 4 multiplied by $5, which equals $20. These figures are planning estimates. Spreads, commissions, swaps, gaps and slippage can change the final result.

How a trailing stop works

A trailing-stop automatically moves a stop-loss when price advances by a selected distance. For a buy position, the stop can rise as the market rises, but it does not move downward when price falls. For a sell position, it can move lower as price falls, but it does not move higher during a rebound.

On MT5 desktop, open the Trade tab, right-click the position, choose Trailing Stop, then select a listed distance or set a custom value. The distance is commonly entered in points, not pips, so traders must check the instrument's decimal format.

The standard MT5 trailing stop is managed by the desktop terminal. The terminal must remain open and connected for it to keep adjusting the stop. Once a new stop-loss has been sent, that existing level remains with the trade, but further trailing adjustments stop if the terminal disconnects. The standard MT5 mobile app does not provide the same native trailing-stop control, although it can display and modify the resulting stop-loss.

Common mistakes to avoid

• Reversing the levels: Placing a buy stop-loss above entry or a sell stop-loss below entry.
• Confusing points and pips: A custom trailing distance may be much smaller than expected.
• Ignoring the spread: Buy and sell positions are triggered using different sides of the quote.
• Moving the stop farther away: This increases the original planned risk.
• Using excessive volume: A valid stop price can still produce an unsuitable monetary loss.
• Assuming exact execution: Gaps and rapid movement can produce a different closing price.
• Forgetting to verify: A rejected modification leaves the previous level unchanged.

Practical pre-trade check

1. Calculate the monetary loss if the stop is reached.
2. Confirm the stop and target are on the correct sides of entry.
3. Check whether the platform expects points, pips or a full price.
4. Submit the order, then verify both levels in the Trade section.
5. If using a trailing stop, keep the desktop terminal connected and confirm that the stop is moving as intended.

Educational content only, not investment advice. Leveraged trading can lose more than you expect.