Know when the stop loss and take profit not work in forex Meta traders | For the beginners in forex Mt4 who are aware of stop loss and take profit in meta traders 4 and 5, Did you know all the time this options will not work before you start learn some of these basic things.
As said is previous articles always clear you doubts in Forex with demo account which is virtual money you cannot lose anything in that. It is recommended by the Forex trading experts that practicing on the demo account more than 6 months for new traders. But that is for one pair all pairs in forex are different so treat everything in different way don’t let one pairs sentiment on the other currency or commodity trading pair.
As per the meta traders there are two options which is take profit and stop loss which is we have already discussed on previous articles, This work of this stop loss, take profit is to stop the trade if it was moving in favorite direction or the opposite one. If the retail trader thought the trade is ok make it as profit then you have to use the take profit option. On the other hand if the trader who is using MT4 and Mt5 considers that percentage of loss is ok and cut the trade then stop loss is best for them.
But the less known fact about these stop loss and take profit options are they won’t work if there is a little jump on the trading condition. For example if you made a trade and made them to stop if the particular percentage of loss take place but while touching that line if the jump occurs the stop loss or take profit will not work and your close will be done only after the steady position. While asking this issue to popular traders and brokers they said the trading is based on average volume so if the stop loss and take profit has been set before the jump and if a trading candle performed a jump based on the average volume only the stop loss will be take place.
Additionally this condition is also for the buy stop, buy limit, sell stop and sell limit. If you made these pending trade before market close and jump during market open or week days open will not execute the trading instantly but will engage itself by the volume basis.