Chapter 6
15-20 min

How to Open and Close Positions

Master market and pending orders, calculate SL/TP, and see how Trailing Stop works — with interactive examples

6.1

Interactive Order Type Demonstrator

Current: 1.10000
1.110
1.105
1.100
1.095
1.090

Keyboard: Use ↑/↓ arrows to adjust order price, Enter to simulate

Market Order

Instant execution at the current price.

When to use:

Quick entry into an ongoing move or for immediate exit.

Common mistake:

Waiting for the perfect price and missing the movement.

Where to place SL/TP:

Set Stop Loss immediately after entry, typically below recent support (for longs) or above resistance (for shorts). Place Take Profit at next key level with minimum 1:2 R:R.

Progress: You've explored 0 of 5 order types.

6.2

Stop Loss & Take Profit Calculator

Why Stop Loss is Critical:

Stop Loss protects your capital from catastrophic losses. It is mandatory in every trade — no exceptions. Trading without a Stop Loss is gambling, not risk management.

Interactive SL/TP Calculator

1.0%
1:1.5
Risk/Reward Ratio
1:1.50

✓ Good ratio

SL Distance
10.0 pips
TP Distance
15.0 pips
SL Price
1.08400
TP Price
1.08650
Risk/Reward Visual
TP
+$15.00
Entry
SL
-$10.00

Pip Value: $1.00/pip

Risk-based calculation • Adjust R:R for better outcomes

Important Notes:

  • This is an educational tool. Actual values depend on symbol specifications, broker conditions, and market circumstances.
  • SL should be beyond market noise (use ATR for guidance)
  • Don't increase lot size to force better R:R — manage distance instead
  • Always test on demo before using real capital
6.3

Trailing Stop Animation

What is Trailing Stop?

Trailing Stop automatically moves your Stop Loss to follow price in profitable direction, maintaining a fixed distance. It locks in gains while protecting against reversals.

Current Price
1.10000
Trailing Stop Level
1.09800

20 pips below

Locked Profit
+0 pips

Waiting for activation

Price Movement
1.10000
TS: 1.09800
Entry: 1.09500

How It Works:

  • Waits for activation profit level
  • Then trails price at fixed distance
  • Only moves UP (for buy), never down
  • Locks profit on each new high

MT5 Trailing Stop Implementation:

Classic Trailing Stop in MT5 works client-side (your terminal must be running). In Expert Advisors (EAs), the logic can be implemented server-side within your code for continuous operation.

Test Your Knowledge

Take this quick 3-question quiz to reinforce what you've learned. You can skip if you prefer.

Risk Warning:

Trading involves significant risk of loss. Past results do not guarantee future performance. Never risk more than you can afford to lose.

Not Financial Advice:

This is educational material only, not investment recommendations. Always conduct your own research and consult with licensed financial advisors before making trading decisions.

Execution Disclaimer:

Order execution, slippage, and spreads depend on your broker and market conditions. Stop Loss orders do not guarantee execution at exact prices during market gaps or extreme volatility. Demo simulations may not reflect real trading conditions.

Progress: Chapter 6 of 12