Take-profit and stop-loss on the IQ option platform! Trading on the IQ Options platform is easy.You go in, select an asset, enter the trade, and voila!But, there’s something you are missing.I’m talking about stop-loss and take-profit.These two orders are a perfect tool for risk management.In this guide, I’ll walk you through how you can set SL and TP on the IQ Options. Platform.So, let’s get started! Saqib Iqbal 25.01.2022 371 Updated: 18.05.2022Content What is a Stop-loss order anyway? What is take-profit? How to set TP and SL on the IQ Options platform? FAQsWhat is a Stop-loss order anyway? Before I begin on other technical stuff, I want to tell you about SL and TP.I’ll talk about the take-profit order later.Here I’ll talk about stop-loss.A stop-loss is to protect you from unlimited losses.It’s an order you place to prevent your trades from further losses.It acts as a shield, protecting your account from further depletion.You protect your trades if the market goes against you when you set a stop-loss.The next question that comes is how to place SL?Placing a stop-loss requires some technical analysis knowledge.You can’t just randomly place a stop-loss.You need to have an understanding of the market.You got to know where the price is heading and how it’ll react.From a basic point of view, you set a stop-loss at a recent high or low.As we know, the price makes highs and lows.It is always moving, never staying in the same direction.So, when you enter a buy position, you set a stop-loss at a recent low.Conversely, when you enter a sell position, you place an SL at a recent high.Don’t worry; I’ll show you how to place SL with an example in a moment.Recent highs and lows are the spots for placing SL for most strategies.However, some strategies may require some tweaking to place a stop-loss.ExampleOk, let’s illustrate SL with an example:Below we have a EUR/USD chart.Stop-loss exampleYou can see that I place a stop-loss near the low of buying position.As I mentioned, it forms the basis for most strategies.I’ll show how you can place a stop-loss order in IQ Options later.What a trailing stop-loss?Now placing stop-loss isn’t the end.You can also place a trailing stop-loss, different from a typical SL.Like a snake trail, trailing SL moves along with the price.You place a trailing stop-loss to and a stop-loss together.What it does is follow the price, thereby minimizing risk exposure.Whether up or down, the price has to stop somewhere.So, a trailing stop-loss goes along with the price and drags itself to a certain level.When the price goes against your direction, a trailing stop-loss order executes.Thereby it prevents you from any further losses.Let’s give you an example of trailing stop-loss.Say you enter long at 1.2626 on the EUR/USD.You place a trailing stop at 1.2616.So, it’s ten pips away.Your actual stop-loss is at 1.1190.If EUR/USD climbs to 1.2631, your trailing stop will also rise to 1.2621.If the price drops, your trailing stop executes, saving you from any further loss.IQ option platforms have an automatic feature of setting a trailing stop-loss.But more on that later.Further reading Pip calculator EXANTE BROKER REVIEW 2022: COST AND BENEFITS Trader’s profitability Calculator Binarycent an automated binary options broker review (US, CA, AU) Trading Strategy Using The MA ALMA What Is AdvCash Or An Off-shore Payment Card AlternativeWhat is take-profit? Now that you know what stop-loss is let’s move to take-profit.TP combines with SL to form the basis of risk management.Let’s find out how it works.As the name suggests, take-profit order lets you end the trade on profit.You set the TP at a specific level, and your position ends when the price reaches it.It does not just end but ends up in profits.What TP does is take the guessing game out of the equation.Sometimes the market can get wild.So, it’s best to take what you can rather than let trades ride.The market can bounce back any time, leaving you with losses.Therefore, TP takes the guesswork out and gives you a profit.Like the SL, setting TP requires knowledge of technical analysis.You can’t set it anywhere.Many people set it too far from their entry point.It’s not a good look, as you never know if your trade will reach this level.In addition, setting TP depends on your trading strategy.For some strategies, you have to set TP before the trend changes.For others, you have to look for indicators to place TP.Let’s explain this with an example.On the EUR/USD chart below, you can see how I placed the take-profit.Take-profit exampleI entered the short trade.I placed my SL to the recent high.For TP, I choose the recent low point.You can see TP executed, and I make some cool pips in the process.The example above is just a basic version of setting TP.You need to set the TP according to your trading plan for complex strategies.Further reading EasyOption Review 2022: Is It Worth It? Live Binary Options Chart What Is A Forex Cent Account? Learn About The Basics! Top 10 Fun Facts About Forex Trading How to make money on binary options without any investment? Moon Bitcoin Review 2022 (True Or Fake)How to set TP and SL on the IQ Options platform? Trading on IQ Options isn’t a hassle.You just select the asset, click the + option on the platform, and voila!So, let’s see how you can set SL and TP on the platform.When you first sign up on the platform, you need to choose a live or a demo account.After selecting the type of account, you place trades.For placing trades, you need to use the + option on the platform.After that, you need to select the timeframe and indicators.You can select any timeframe from 1-minute to 1-month.If you don’t want to use the indicator, skip this part.But I recommend using indicators.So, you can get an idea of where the price will go.After doing a technical analysis, you need to input the investment amount.IQ platform allows you to choose the amount you wish to invest in a single trade.After selecting the amount, you need to decide which position to take.You need to decide whether the price will rise or fall.You can avail this option when you first place a trade.If you want to long the trade, you have to click buy.Conversely, you have to click sell if you want to go short.Now comes the most important part; setting TP and SL.I’ve explained how you can set TP and SL above.But I placed them manually.On the IQ Options platform, you have a choice.You can either set them automatically or manually.When you place the trade, the IQ platform gives you an option of setting SL and TP.You can set both orders at an equal distance, like 30 pips.Or you can set them according to your trading strategy.For instance, if you set SL 20 pips away, you can place TP 30 pips away.There’s a position auto-closing option on the platform.Setting SL and TP on the IQ Options platformThrough this, you can automatically select SL and TP levels.IQ Options sets your TP and SL in a percentage of your investment.For example, if you invest $100 and set SL at 2% on a single trade.In this case, if the trade goes against you, then you lose $2.Take-profit also executes in this manner.You set TP at a certain percentage of your amount, say 2% or 3%.And when the price goes in your favor, you get 2% or 3% of the total profit.I mentioned trailing stops also.You need to set trailing stop manually on the IQ platform.There’s no option of selecting a trailing stop automatically.But don’t fret!I explained everything in detail above.So, you can set it according to the instructions outlined earlier.IQ Options SL and TP calculatorIQ Options is kind enough to provide us with SL and TP calculators.It eliminates the hassle of calculating SL and TP manually.You can find the calculator on the Traders Room option in your account’s dashboard.The calculator comes up with the percentage according to your investment.You enter your initial investment in the calculator, and it tells you SL and TP levels.I think this is a really helpful tool.Because in some strategies, determining SL and TP becomes difficult.The SL and TP calculator takes this difficulty out of the equation.IQ Options SL and TP calculatorFurther reading What Is FOREX? Unknown Facts & Figures (The Ultimate Guide) Live Currency Heat Map MBA Forex Blamed CBN Because Of Inability To Return Funds The "Roof" strategy of trading on the futures market How long does it take to learn to trade binary options? Investors take Forex platform ROFX and its founders to court FAQsWhy use take-profit or stop-loss orders?Take-profit and stop-loss orders are effective tools for risk management. They remove the guessing game and help you take profits or prevent losses.Does IQ Options have an auto feature for SL and TP orders?Yes, the IQ Options platform allows you to place TP and SL orders automatically. You can do this by selecting the auto position option.Can I use a trailing stop on the platform?You can use the trailing stop manually on the IQ platform. However, the platform doesn’t have an automatic function for setting a trailing stop.Is SL and TP calculator worth a try?The IP Options SL and TP calculator help you in determining SL and TP on your initial investment. In addition, it helps in placing stop-loss and take-profit orders on complex strategies.Final thoughts Setting TP and SL on IQ Options isn’t complex.You can either set them manually or automatically.The platform gives its users a full trading experience.So, without a doubt, IQ Options has some of the best trading features.Also, you can use their SL and TP calculator to remove all the hassle work.Further reading Cryptocurrency trading and binary options CXMARKETS BROKER REVIEW 2022: COST AND BENEFITS BinaryOnline - forex trading platform review Learning to use the Economic calendar in binary options trading Building Small Profits, Fast: How to Use a Scalping Strategy for Options Trading Should I register an account on the Block Option?