> For the complete documentation index, see [llms.txt](https://help.cheer.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.cheer.trade/trade/part-4-safety-nets-stop-loss-take-profit-and-safety-protections.md).

# 🛡️ Part 4: Safety Nets (Stop Loss, Take Profit & Safety Protections)

###

Trading involves risk. Use these automatic server tools in Cheertrade to protect your account, even when your App is completely closed.

#### 1. Stop Loss (SL) & Take Profit (TP)

* Stop Loss (SL): Your absolute emergency brake. You set a price limit where you want to close a losing trade to prevent further losses.
* Take Profit (TP): Your target exit. The platform automatically closes your trade when it reaches your desired profit target, locking in your gains.
* ⚠️ Important Trigger Rules:
  * For Buy (Long) positions: SL and TP are triggered by the Bid price.
  * For Sell (Short) positions: SL and TP are triggered by the Ask price.

#### 2. Margin Call & Stop Out (Liquidation Protection)

* Margin Call: A warning signal sent to your terminal when your account health (Margin Level) drops dangerously low. It means you need to deposit more funds or close some trades manually.
* Stop Out: The automated emergency protection. If your account health continues to drop to the platform's minimum safety percentage, the Cheertrade server will automatically close your most unprofitable trades one by one to protect your remaining cash from disappearing.

#### 3. Negative Balance Protection (NBP)

* In extreme market gaps (like sudden weekend political events), prices can jump so fast that a Stop Out cannot catch it, causing an account balance to drop below zero (e.g., -$50).
* Our Guarantee: With Negative Balance Protection, our system automatically wipes out your negative debt and resets your account balance back to $0. You will never owe Cheertrade money.


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