Trading Panel: Target Functionality Overview

Introduction to Target Setting

The 'Target' feature within the Trading Panel is a crucial element for executing a trading strategy effectively. It allows traders to define a specific exit price for their trades, which can be set as either a 'Take Profit' (TP) or 'Stop Loss' (SL) level. These targets are instrumental in locking in profits and minimizing losses.

Advantages of Automated Target Setting

Manually inputting TP or SL levels, especially with instruments having multiple decimal places, can be time-consuming and prone to error. To streamline this process, our platform offers various user-friendly methods for setting these parameters:

Price Method

Functionality: Enter the exact price point at which the TP or SL should trigger.

Benefit: Precise control over the exit levels of the trade.

Price Method Example: If you're trading a stock currently priced at $100 and you aim to take profit at $110, you would simply enter $110 as your TP target. For a SL, if you're only willing to risk a fall to $95, then you set $95 as your SL price.

Points Method

Functionality: Define the TP or SL level by specifying the number of points away from the entry price.

Benefit: Simplifies the process by automating the calculation of TP or SL based on a distance in points.

Points Method Example: For an index trading at 3,000 points, you want to set a TP 50 points higher and a SL 25 points lower. You enter '50' for TP and '25' for SL, and the system calculates the exact price levels for you, setting TP at 3,050 and SL at 2,975 points.

Pips Method (FX specific)

Functionality: Similar to points but tailored for the forex market, this option allows setting the TP or SL in pips.

Benefit: Facilitates setting targets in forex trading without manual calculations.

Pips Method Example (FX specific): In Forex trading, if EUR/USD is trading at 1.1800 and you want your TP to be 20 pips higher, you input '20' in the Pips field for TP. Your TP is then set at 1.1820. Similarly, for an SL 15 pips lower, you enter '15' and get an SL at 1.1785.

Percent Method

Functionality: Set TP or SL as a percentage move from the current market price.

Benefit: Targets are defined as a market movement, enabling proportional risk management.

Percent Method Example: Assume you're trading a cryptocurrency at $1,000 and you want to set a TP that's 10% higher and an SL that's 5% lower. By entering '10' in the Percent field for TP and '5' for SL, your TP would be set at $1,100 and your SL at $950.

Currency Method

Functionality: Input the desired monetary amount to be gained for TP or lost for SL.

Benefit: Directly links the financial outcome to the TP/SL levels, aligning with risk appetite.

Currency Method Example: If you're trading with a capital of $10,000 and are willing to risk $500 for SL or aim to make $1,000 for TP, you simply enter these amounts into the Currency field. The system will adjust your TP and SL levels based on the position size to ensure you don't lose more than $500 or your TP is realized at a $1,000 profit.

Each of these methods streamlines the process of setting target levels, making it easier for traders to apply their strategies efficiently and accurately.

Conclusion

Our Trading Panel's 'Target' feature is designed to cater to traders’ diverse needs and preferences, offering a flexible and intuitive way to manage trades. By providing multiple formats for entering TP and SL levels, we ensure that traders can quickly and efficiently set their desired profit and loss thresholds, thus optimizing their trading experience and maintaining control over their risk management strategies.