What is the difference between a stop-loss and take-profit order?

Stop-loss and take-profit orders are limit orders attached to a position that trigger market orders when a specific price is reached.

Place a take-profit order if the price you are trying to set on your order to open is better than the current market. This will only execute if the market price is at this limit or better, and will trigger a market order to close the position at this price.

Place a stop-loss order if the level you are trying to execute is worse than the current price, which can be a useful tool for risk management. If the level is breached, your order will be traded at market irrespective of the price. You can therefore be filled at a worse level than you requested. If you are attaching a stop-loss to a position as a close condition and it’s triggered, there is a chance it will be filled at a worse level.