Every successful trader realises that managing risk is as crucial as generating income. There are two of the most efficient instruments for risk management, and these are Stop Loss (SL) and Take Profit (TP) orders. These instruments help traders to free themselves from any emotional factors and become more disciplined.
When using XTB, both the SL and TP orders can be used via xStation before starting the trading process. These types of orders are useful in risk management. However, it does not prevent risks. The regular stop-loss order is not always executed at a certain level due to market volatility.
In TradingCritique’s broker evaluation, XTB earned a TC Validated rating of 7.97/10, reflecting its strong regulation, risk management features, user-friendly platform, and overall trading experience. Explore our full XTB review 2026 know its trading platform, markets, fees, and overall features before you start using stop loss and take profit orders.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What is stop loss and take profit in trading?
Stop loss and take profit orders allow you to create an automatic exit from the trade without constant monitoring of the market in order to minimise risks.
Stop loss order
A stop loss in trading is an order that closes your trade if the market moves against you and reaches a price you have specified. For instance, if you enter into a trade on CFDs at $100 and place a stop loss at $95, when the market price drops to this level, the system will try to exit you from the trade.
Take profit order
A take profit order automatically closes your position once the market reaches your chosen profit target. For instance, if you make a trade at $100 and set the take profit at $115, your trade will be closed automatically when this price level is reached.
Thus, the combination of stop loss and take profit allows defining your trading strategy in advance. If you’re a beginner with the concept of a stop loss in trading, read our detailed guide before setting your first protective order.
How does stop loss work on XTB?
On the xStation platform by XTB, you will be able to set a stop loss for your transaction either before or after opening your position. Once the market reaches your stop loss level, XTB will send an order to terminate your transaction. This way, the risk of losing money is minimised without continuous monitoring of the market.
A standard stop loss order does not always guarantee the closing of your trade at the level that you have chosen. In case of high volatility, important news, or market gaps, your trade might be closed at the next available price. The difference between the two prices is known as slippage.
However, stop loss orders for XTB are normally not guaranteed through their main retail trading system. This could lead to slippage when there is fast movement in the markets. Remember to check the latest products for XTB since there might be changes to the platform features.
Industry insight
Based on years of experience in the regulated brokerage industry, one of the most common mistakes beginners make is setting a stop loss based only on how much money they are willing to lose. Instead, it should be placed at the price where the trade idea is no longer valid. Another common mistake is moving the stop loss farther away when the market moves against the trade. While this may keep the trade open for longer, it can also lead to bigger losses. A stop loss works best when it is set before entering a trade and followed consistently.
How take profit works on XTB?
The XTB take profit order automatically closes your position when the price reaches your chosen profit target. Unlike a stop loss, which limits potential losses, a take profit order helps lock in gains without requiring you to monitor the market constantly. Once your trade reaches the specified take profit price, XTB automatically submits a closing order.
Using the take profit feature, it enables you to execute your trading plan rather than being emotional. During hectic market conditions, however, the price used to execute your trade may not be the same as what you initially selected.
How to set stop loss and take profit on XTB?
Adding stop loss and take profit orders to XTB is quite simple and can be done both when creating a new trade and when a certain position is already opened. Here is the step-by-step guide on how to set the orders on XTB.
Adding SL and TP to open a new trade (xStation 5 desktop version)
xStation 5 – desktop
- 1Log into the xStation trading platform
- 2Pick up the XTB financial instruments you wish to trade
- 3Press Buy or Sell to open the order form
- 4Specify your trade volume
- 5Switch stop loss on and specify your desired price level
- 6Switch take profit on and specify your target price level
- 7Check the order details
- 8Confirm the trade and open your position with two protective orders in place
Setting SL and TP through the XTB mobile app
The mobile version allows for the same capabilities as the desktop version.
XTB mobile app
- 1Open your XTB mobile app and log in
- 2Choose the instrument that you want to trade
- 3Tap on Buy or Sell
- 4Input your position size
- 5Set stop loss and take profit
- 6Input your levels
- 7Preview the order details
- 8Confirm the trade
Stop loss and take profit orders modification for already opened trade
In case your position is already open, you still have the opportunity to change both orders.
- Open positions or open trades window
- Select the trade you want to modify
- Select the option to modify the position
- Specify the new stop loss or take profit levels
- Apply changes
Consider before confirming your order
Before you execute any trade, it would be important to remember the following:
- Your stop loss and take profit are properly set.
- Your position size is reviewed.
- Understand how leverage works in relation to profits and losses.
- Note that there might be slippage for your stop loss in volatile markets.
- Make sure you have your exit plan beforehand. If you’re still learning the trading process, read our guide on how to buy and sell on XTB before placing live trades.
Following a consistent process can help reduce errors and support more disciplined trading decisions.
Open your XTB account today
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What are the best stop loss strategies for beginners?
A stop loss strategy is essential, but knowing how to pick the appropriate level is equally important. A stop loss placed too close may result in early closure of your trade, whereas a stop loss that is too far away can cost you more money.
Here are some of the most common approaches used by traders. These are educational examples rather than recommendations for any specific trade.
Place your stops near support and resistance levels
Rather than placing your stop loss randomly, many traders prefer placing their stop loss below support and above resistance levels. This is because if the price breaks out of these levels, it may mean the trade idea is no longer valid.
Consider market volatility
Different markets have different levels of volatility. High volatility markets usually require a broader stop loss range compared to low volatility markets. Many traders tend to utilise indicators such as Average True Range (ATR) to calculate the average market movement.
Do not use round figures
Traders are likely to put their trades in round figures like $100, $500, or $1,000. Setting your stop loss order at those figures might lead to the closure of your position as a result of normal price action.
Plan before entering
Your stop loss order should be determined before entering a trade. This ensures that your decision-making is not emotionally driven once you have entered into the trade. For a broader understanding of position sizing, leverage, and protective strategies, see our XTB risk management guide.
How to choose the right risk-to-reward ratio?
Risk-to-reward ratio (R: R) compares the amount you are willing to risk with the potential reward you hope to achieve. There is no guarantee of profit from trading through a positive risk-to-reward ratio, but it may be used to increase consistency.
| Entry price | $100 |
| Stop loss | $95 |
| Risk involved | $5 |
| Take profit | $110 |
| Reward involved | $10 |
| Risk-to-reward ratio | 1:2 |
Here, the risk for $5 could yield a potential reward of $10.
| Entry price | $200 |
| Stop loss | $190 |
| Risk involved | $10 |
| Take profit | $230 |
| Reward involved | $30 |
| Risk-to-reward ratio | 1:3 |
Here, the risk for $10 could yield a potential reward of $30.
Note that the above numbers are merely illustrative examples and do not constitute advice on trading. It is necessary to understand how leverage will affect your position sizes as much as determining your stop-loss level. Learn more about leverage in our XTB leverage guide.
Does XTB offer trailing stop loss?
Yes, XTB provides traders using the xStation trading platform with a trailing stop option for suitable CFD positions. A trailing stop is a dynamic stop loss that automatically moves in the direction of a profitable trade by a specified distance. Unlike a fixed stop loss, it adjusts as the market moves in your favour.
As the price continues to move in your favour, the trailing stop follows it while maintaining the set distance. If the market later reverses, the trailing stop stops moving and remains at its last level. If the price then reaches that stop level, XTB automatically closes the position to help protect your profits or limit further losses.
Benefits of a trailing stop
- Protects your profits by moving along with favourable market movements.
- Reduces the need for manual adjustment of your stop loss.
- Allows profitable trades to carry on their movement while limiting any possible losses due to a change in market direction.
Limitations
- It does not ensure the execution of the order at the particular stop loss level.
- There is a possibility of slippage, especially in highly volatile markets or when there is a gap in price level.
XTB SL/TP vs other brokers
Compare XTB’s stop loss and take profit tools with other popular brokers below.
| Features | XTB | eToro | Exness |
|---|---|---|---|
| Standard stop loss | Yes | Yes | Yes |
| Take profit | Yes | Yes | Yes |
| Trailing stop | Available on supported CFD positions | Limited availability depending on the platform | Available |
| Guaranteed stop loss | Not offered as standard | Not offered as standard | Not offered as standard |
Whereas all three brokers offer standard stop loss and take profit functions, the provision of other types of orders, like trailing stop, depends on the platform and the account type being used to trade.
What are the pros and cons of XTB risk management tools?
Understanding the strengths and limitations of XTB’s risk management tools can help you use them more effectively in different market conditions.
| Pros | Cons |
|---|---|
| Easy to add stop loss and take profit during order entry | Standard stop losses are not guaranteed during volatile markets |
| Orders can be modified after opening a trade | Slippage can occur during gaps or high volatility |
| Trailing stop functionality is available for supported CFDs | Risk management tools cannot eliminate market risk |
| Integrated directly into the xStation platform | Effective use still requires planning and discipline |
| Available on both desktop and mobile | Poor stop placement may still lead to unnecessary losses |
Conclusion
Stop loss and take profit are two of the most important risk management tools available on XTB. Using the xStation platform, you can easily set or modify these orders on both desktop and mobile. They help you plan your trades and manage potential losses more effectively.
These orders do not guarantee that you will be risk-free in your transactions. The standard stop loss order is subject to slippage during volatile markets or price gaps. XTB has earned the TC validated rating of 7.97/10 due to its easy-to-use trading platform, risk management facilities, and other features.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pro tip
A well-placed stop loss is more effective than a tight stop loss. Always check your stop loss and take profit levels before confirming a trade. A quick review can help prevent costly mistakes caused by incorrect order settings.
Frequently Asked Questions
1. Does XTB have a stop loss?
Yes, XTB allows traders to set standard stop loss orders on supported instruments through the xStation platform.
2. What is a stop loss in XTB?
A stop loss is an order that automatically attempts to close your position if the market reaches a specified price, helping limit potential losses.
3. How does take profit work on XTB?
Take profit automatically closes your position when your chosen profit target is reached, allowing you to lock in gains without manually closing the trade.
4. Can beginners use stop losses effectively?
Yes, beginners can use stop loss orders to define risk before entering a trade. Understanding market structure and position sizing is equally important.
5. How do I set stop loss and take profit on XTB?
You can add both orders while opening a new trade or edit them later from the open positions window in the xStation desktop platform or mobile app.
6. Can I change the stop loss after opening a trade?
Yes, XTB allows traders to modify stop loss and take profit levels on open positions at any time while the market is open.
7. Does XTB support trailing stop loss?
Yes, XTB supports trailing stop functionality for eligible CFD positions, allowing the stop loss to move automatically as the market moves in your favour.
8. Can stop loss fail during market volatility?
Yes, stop loss may not execute at the exact price you selected during periods of extreme volatility or market gaps. This is known as slippage and is a normal characteristic of standard stop loss orders.
9. How can I avoid emotional trading losses?
Planning your entry, stop loss, take profit, and position size before opening a trade can help reduce emotional decision-making.
10. Does XTB guarantee stop loss execution?
No, standard stop loss orders on XTB are not guaranteed to execute at the exact stop price. During fast-moving or gapping markets, your order may be filled at the next available market price, which can be worse than your selected stop level due to slippage.
More on XTB
Continue your research across the XTB review.
