Stop Loss and Take Profit

Stop Loss and Take Profit are here

And here’s everything you need to know

Whether you’re new to trading or just getting your feet wet, learning how to manage risk and lock in gains is one of the most important things you can do.

Let Clarity do it for you.
It’s trading — but with a safety net.

Even experienced traders don’t always get it right – that’s why they use tools like this. For you, as someone new to trading, this means:

That’s why Clarity now offers Stop Loss and Take Profit.
They’re smart tools that help you trade with more confidence – even if you’ve never done this before.

Let’s break it down.

What is a Stop Loss?

A Stop Loss is like a seatbelt for your investment.

When you buy something – like a stock – its price can go up or down. A Stop Loss helps protect you if the price drops too far. It’s a way of saying:

“If this goes the wrong way, sell it before I lose more than I’m okay with.”

Example:

You buy a stock for R100.

You decide you only want to risk R10.

You set a Stop Loss at R90.

If the price drops to R90, Clarity automatically sells it – so you don’t lose more than that.

Why it matters:

You don’t need to sit and watch the markets.
You avoid emotional decisions when things go bad.
You limit your downside – automatically.

What is a Take Profit?

Take Profit is the flip side of a Stop Loss. Instead of limiting your loss, it locks in your win.

It’s a way of saying:

“If this goes the right way, sell it at a price I’m happy with – before things turn.”

Example:

You buy a stock for R100.

You decide you’d be happy to sell it at R120.

You set a Take Profit at R120.

If the price rises to R120, Clarity sells it – and you walk away with your profit.

Why it matters:

It helps you stick to a plan.
It takes the emotion out of “when should I sell?”
You capture gains before the market changes direction.

How do you decide what prices to set?

This part is a mix of personal choice and strategy. You don’t need to be a pro – just ask yourself a few simple questions:

1. How much are you willing to lose?

Let’s say:

You’re buying a share for R100.
You’re okay with losing R10 if things don’t go your way.

Set your Stop Loss at R90.

2. How much profit are you aiming for?

Let’s say:

You’d be happy to earn R20 on this trade.

Set your Take Profit at R120.

3. What’s the current market doing?

If the price is very volatile (jumping around a lot), you might want to:

Give your Stop Loss more space (to avoid being triggered too early).
Set more realistic Take Profit targets.

4. Use the Risk:Reward idea

A common starting point is a 1:2 ratio – risk R10 to potentially make R20.

This helps you balance losses and wins in a smart way.

What happens behind the scenes?

Once your Stop Loss and Take Profit levels are set:

Clarity continuously monitors the live market price.
If the price reaches one of your levels – Stop Loss or Take Profit – your trade is triggered to close.
The platform will sell your investment at the set price or as close to it as possible.

Because prices can move quickly, especially in fast-moving markets, the exact execution price might differ slightly.

For example: If your Stop Loss is set at R90, it might be triggered when the price hits R90 — but actually execute at R89.90, depending on what’s available in the market at that moment.

This is completely normal and part of how real-world trading works. You’re still protected — and your trade is automatically managed without needing to take action.