How the levels are found
Buy: SL = entry − pips × pip size · TP = entry + pips × pip size
Sell: SL = entry + pips × pip size · TP = entry − pips × pip size
Sell: SL = entry + pips × pip size · TP = entry − pips × pip size
Example: Sell GBP/USD at 1.27000 with a 40-pip stop and 80-pip target. SL = 1.27400, TP = 1.26200.
Where to put your stop
- Beyond a recent swing high or low, not at a round number where many orders cluster.
- Outside normal noise: a stop smaller than the pair’s typical hourly range is often hit by random movement.
- Then use the lot size calculator to size the trade for that stop.
Frequently asked questions
Do buy stop losses trigger on the bid or ask?
On most platforms a buy position closes at the bid price, so its stop loss triggers on the bid. A sell closes at the ask, so spread can trigger it slightly earlier.
Should I use a trailing stop?
A trailing stop locks in profit as price moves your way. It suits trending moves but can close trades early in choppy markets.