Stop loss and take profit

Managing a trade after entry, so winners are banked and losers stay small.

Risk & Money ManagementLesson 4 of 7

All lessons

By the end of this lesson you'll be able to:

01Define take profit and trailing stops
02Explain when to lock in gains
03Avoid giving back profits

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

Stop Loss and Take Profit: A Beginner's Guide

Key terms

Take Profit Stop Loss Trailing Stop Limit Risk Management

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What does a take-profit order do?
Question 02
You want to bank a guaranteed profit at a set level. Which order do you use?
Question 03
How does a trailing stop behave?
Question 04
You are in profit and price begins to reverse. What will a trailing stop do?
Question 05
What is a trailing stop's advantage over a fixed take-profit?
Question 06
Which is a common trade-management mistake?
Question 07
Mid-trade you move your target further out because it 'could go higher.' What does this often do?
Question 08
When should you decide your trade-management rules?
Question 09
What is a common combined exit approach?
Question 10
What is a common way to combine the two approaches?

Answered 0 of 10 · pass 70% (7/10) to complete

Risk & Money Management4 of 7

Stop loss and take profit

Managing a trade after entry, so winners are banked and losers stay small.

Risk & Money ManagementLesson 4 of 7

All lessons

By the end of this lesson you'll be able to:

01Define take profit and trailing stops
02Explain when to lock in gains
03Avoid giving back profits

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

Stop Loss and Take Profit: A Beginner's Guide

Key terms

Take Profit Stop Loss Trailing Stop Limit Risk Management

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What does a take-profit order do?
Question 02
You want to bank a guaranteed profit at a set level. Which order do you use?
Question 03
How does a trailing stop behave?
Question 04
You are in profit and price begins to reverse. What will a trailing stop do?
Question 05
What is a trailing stop's advantage over a fixed take-profit?
Question 06
Which is a common trade-management mistake?
Question 07
Mid-trade you move your target further out because it 'could go higher.' What does this often do?
Question 08
When should you decide your trade-management rules?
Question 09
What is a common combined exit approach?
Question 10
What is a common way to combine the two approaches?

Answered 0 of 10 · pass 70% (7/10) to complete

Risk & Money Management4 of 7

Stop loss and take profit

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What does a take-profit order do?

You want to bank a guaranteed profit at a set level. Which order do you use?

How does a trailing stop behave?

You are in profit and price begins to reverse. What will a trailing stop do?

What is a trailing stop's advantage over a fixed take-profit?

Which is a common trade-management mistake?

Mid-trade you move your target further out because it 'could go higher.' What does this often do?

When should you decide your trade-management rules?

What is a common combined exit approach?

What is a common way to combine the two approaches?

Stop loss and take profit

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What does a take-profit order do?

You want to bank a guaranteed profit at a set level. Which order do you use?

How does a trailing stop behave?

You are in profit and price begins to reverse. What will a trailing stop do?

What is a trailing stop's advantage over a fixed take-profit?

Which is a common trade-management mistake?

Mid-trade you move your target further out because it 'could go higher.' What does this often do?

When should you decide your trade-management rules?

What is a common combined exit approach?

What is a common way to combine the two approaches?