Set 'Close at Profit' [Stop Limit] and/or 'Close at Loss' [Stop Loss] Price Levels
‘Close at Profit’ [Stop Limit] and ‘Close at Loss’ [Stop Loss] orders can be added to your trades when opening a new position/pending order, or when editing an existing position. These orders allow you to set a specific rate at which your position will close, in order to protect your profit, in the case of Close at Profit order or minimise your loss, in the case of Close at Loss order.
Note that Close at Profit and Close at Loss orders do not guarantee your position will close at the exact price level you have specified. If the market price suddenly gaps down or up, at a price beyond your stop level, it is possible your position will be closed at the next available price which can be a different price than the one you have set. This is known as 'Slippage'.
Gold CFD is trading at $1,405/$1,410 (Sell/Buy) per bullion.
You decide to open a Buy position on 10 units of Gold CFD at $1,410 while placing a Close at Loss order at $1,390.
Gold CFD price falls directly to $1,390 and then to $1,350. Your position will automatically close at $1390.
Your loss is: 10 * (1,390 - 1,410) = -$200
If Gold CFD’s price ‘gaps down’ from $1,410 directly to $1,350, the trade will close at $1,350 instead of $1,390 which was the Stop Loss level you have set. Since the Stop is not guaranteed, when the market suddenly dropped and passed $1,390, the position was triggered to close at the next available price which was $1,350.
In this case your loss will be: 10 * (1,350 - 1,410) = -$600