Stop Loss / Take Profit

Stop Loss requests an exit at an adverse price threshold, while Take Profit requests an exit at a target level.

For typical OTC quotes, long positions use Bid for exit triggers and short positions use Ask.

Gaps and slippage can move an ordinary stop-loss fill beyond its trigger, so it does not guarantee a maximum loss.

Take-profit execution also depends on broker rules and liquidity, with limit-style exits able to receive price improvement or remain unfilled.