> ## Documentation Index
> Fetch the complete documentation index at: https://docs.entry.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Stop loss and take profit

Stop loss and take profit are tools that help you close a trade automatically.

* A **stop loss** closes a trade to limit downside
* A **take profit** closes a trade to lock in gains

These tools are useful because they help you plan the trade before emotions take over. In Entry Finance, the practical setup happens in the order panel or from the **Positions** tab, as shown in [How to manage TP/SL](/using-the-terminal/how-to-manage-tp-sl).

# Why they matter

A lot of beginner mistakes happen after the trade is already open.

For example:

* holding a losing trade too long
* closing a winning trade too early
* staring at the screen and changing the plan every few minutes

Stop loss and take profit help solve this by turning your plan into clear levels.

# Simple example

Imagine you open a long on BTC at `60,000 USDC`.

Before the trade moves, you decide:

* if BTC falls to `58,500`, you want to exit and limit the loss
* if BTC rises to `63,000`, you want to secure profit

So you set:

* stop loss at `58,500`
* take profit at `63,000`

Now the trade has structure. You already know where you are wrong and where you are satisfied with the result.

# Why this is useful for a user

These orders help you:

* protect your capital
* stay disciplined
* trade without watching the chart every second
* reduce emotional decisions

They are especially important when using [perpetual trading](/trading-basics/perpetual-trading) and [leverage](/trading-basics/leverage-explained), where price moves affect your position faster.

# One important detail

On many trading platforms, protective orders are triggered using the **mark price**, not only the last traded price. This is done to make the system more stable and harder to manipulate.

Also remember that in very fast markets, the final execution price may differ slightly from the trigger price. If you want to move protection to breakeven without calculating the level manually, Entry Finance also has a dedicated [Breakeven position](/using-the-terminal/breakeven-position) action.