Hi redshifts,
Good question.
In Alpari (UK)'s MT4 five decimal place system 10 points equal to 1 pip. Therefore if you are setting a stop loss at 50 points, it equals to 5 pips.
Let’s get back to the basics:
• Stop Loss: an order to close a previously opened position at a price less profitable for the customer than the price at the time of placing the order.
• Take Profit: an order to close a previously opened position at a price more profitable for the customer than the price at the time of placing the order.
If you place these types of orders you do not have to sit in front of your computer to wait for the outcome. “Take Profit” and “Stop Loss” orders will be executed automatically as soon as the price reaches order level (see below). You can place Stop Loss and Take Profit at the time of making a deal filling in the “Stop Loss” and “Take Profit” fields in the “Order” window:
Afterwards in order to modify Stop Loss and Take Profit levels use the context menu:
Right-click on the open position or on the pending order in the “Trade” tab of the “Terminal” window then select “Modify or delete order”. The “Modify order” window enables:
Fill in the “Stop Loss” and “Take Profit” fields. By pressing the red button (in our example “1.2121”) you can copy this level into the “Stop Loss” field. By pressing the blue button (in our example ‘1.2096’) you can copy this level in the “Take profit” field. The value in the “Level” field defines the difference between the order level and the current price. Once you fill in the “Stop Loss” and/or “Take profit” fields press the “Modify #position number” button.
The limits for the minimum range between the order and the current price are defined in the Contracts Specifications.
In order to delete “Stop Loss” or “Take Profit” orders, specify its level as equal to zero.
“Stop Loss” and “Take Profit” orders are executed in the following cases:
• The “Take Profit” order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or higher than the order level.
• The “Stop Loss” order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or lower than the order level.
• The “Take Profit” order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or lower than the order level.
• The “Stop Loss” order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or higher than the order level.
The order will be executed if at least one quote in the quotes flow reaches the order level. Please note, that in MetaTrader 4, charts are created using Bid prices. So:
• Minimum Ask price is equal to the minimum bar price (Low) plus spread.
• Maximum Ask price is equal to the maximum bar price (High) plus spread.
• Minimum Bid price is equal to the minimum bar price (Low).
• Maximum Bid price is equal to the maximum bar price (High).
If, under abnormal market conditions, the order level falls within the price gap, Alpari (UK) has the right to execute the order at the Bid or Ask price (depending on order type) of the first obtainable after the gap quote.
If you have any other queries, please feel free to contact our team on live-chat, via email or on +44 (0) 207 426 2900. We’re here to help.
Alex
