How to read entry, take profit, and stop loss

Published September 11, 2026 · All articles

Every trade you place using a signal requires three numbers: entry, take profit, and stop loss. Get these right and you control your risk. Skip one of them and you are gambling, not trading.

Entry price

The entry price is the market price at the moment the signal was generated. It is not a guarantee. Prices move every second. When you open your broker platform after reading the signal, the price may be slightly different.

If the current price is within 10 pips of the entry shown, the signal is still valid. Open the trade at the current market price.
If the current price has moved more than 15 pips from entry, the signal may no longer have the same risk-reward ratio. Consider waiting for a fresh signal rather than chasing the market.

Take profit (TP)

Take profit is the price at which your trade closes automatically in profit. For a BUY trade, TP is above the entry. For a SELL trade, TP is below the entry.

In your broker platform, enter TP as a limit order or a profit target when you open the trade. When price reaches the TP level, the position closes and the profit goes into your account. Do not remove the TP once it is set. Let the system manage the exit.

Stop loss (SL)

Stop loss is the price at which your trade closes automatically when price moves against you. It caps your loss to a defined, manageable amount. For a BUY trade, SL is below the entry. For a SELL trade, SL is above the entry.

Set the SL before you confirm the trade. Every time. Without exception. Markets can gap during news releases. Without a stop loss, a trade can run hundreds of pips against you before you can close it manually.

Risk-reward ratio

SignalsTrades calculates TP and SL so the distance to TP is 1.5 times the distance to SL. This is the risk-reward ratio of 1:1.5. It means if you risk 30 pips to the SL, you target 45 pips to the TP. Over many trades, a 1:1.5 ratio produces positive results even if you win fewer than half your trades.

Signal	Entry	SL	TP	Risk	Reward
BUY EUR/USD	1.0867	1.0837 (-30 pips)	1.0912 (+45 pips)	30 pips	45 pips (1:1.5)
SELL GBP/USD	1.2750	1.2800 (+50 pips)	1.2675 (-75 pips)	50 pips	75 pips (1:1.5)

How to enter these numbers in your broker

Open a new order for the pair shown in the signal.
Set the order type to Market (executes immediately at current price).
Select BUY or SELL as shown in the signal direction.
Enter the TP price in the "Take Profit" field.
Enter the SL price in the "Stop Loss" field.
Confirm the trade. Both TP and SL are now live on the position.

Can I move the stop loss after the trade is open?

You can move SL in your favor once price has moved toward TP. This is called a trailing stop and it locks in profit while keeping the trade open for more upside. Never move SL further away from entry to avoid a loss. That turns a small, planned loss into a large, unplanned one.

What if my broker shows prices in different decimal places?

Most modern brokers show 5 decimal places for EUR/USD. The fifth decimal is a pipette (one-tenth of a pip). Enter the full price as shown. The broker will handle the display format.

What happens if I forget to set the stop loss?

The trade runs without a loss limit. On a news spike or gap, it can lose far more than planned. Always set SL before confirming the order. Many broker platforms allow you to set a default SL distance in settings.

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