# Take Profit Stop Loss Order

### **What is a Preset TP/SL Order?**

A Preset take-profit/stop-loss order allows traders to configure TP/SL conditions simultaneously with placing an open order. This is useful when the position has not yet been created, but the trader wants to have exit conditions ready in advance.

In short:

> **Preset TP/SL = Open Order + Predefined Take Profit / Stop Loss Parameters**

### **How Does It Work?**

This is a type of **OTO order (One-Triggers-One)**, meaning:

* The **main order** (buy or sell) is placed first.
* Once the main order is filled and a position is opened, the system **automatically submits** a corresponding take-profit (TP) or stop-loss (SL) order.

### **What You Need to Set**

When placing an open order with preset TP/SL, you will configure:

#### **Main Order**

* Order Type: Limit or Market
* Order Price (if Limit)
* Quantity

#### **Take Profit Order**

* TP Trigger Price
* TP Execution Type: Limit or Market
* TP Order Price (if Limit)

#### **Stop Loss Order**

* SL Trigger Price
* SL Execution Type: Limit or Market
* SL Order Price (if Limit)

### **Trigger Conditions and Rules**

To ensure a valid setup, the TP/SL trigger prices must follow these conditions based on order type and position direction:

| **Position** | **Order Type** | **Trigger Rule (Take Profit)**               | **Trigger Rule (Stop Loss)**                 |
| ------------ | -------------- | -------------------------------------------- | -------------------------------------------- |
| Open Long    | Limit          | Trigger > Minimum(Order Price, Sell 1 Price) | Trigger < Minimum(Order Price, Sell 1 Price) |
| Open Long    | Market         | Trigger > Sell 1 Price                       | Trigger < Sell 1 Price                       |
| Open Short   | Limit          | Trigger < Maximum(Order Price, Buy 1 Price)  | Trigger > Maximum(Order Price, Buy 1 Price)  |
| Open Short   | Market         | Trigger < Buy 1 Price                        | Trigger > Buy 1 Price                        |

### **Order Lifecycle and Status**

#### **1. After Submission**

* The TP/SL is shown in the **Current Orders List**.
* Status is marked as **"Not in Effect"** because the order is pending trigger.
* TP/SL becomes **"Effective"** only once the main order is filled and a position is formed.

#### **2. Once the Position is Opened**

* The TP/SL order is submitted automatically based on the previously set parameters.
* **Limit TP/SL Quantity** = Main order quantity
* **Market TP/SL Quantity** = Actual filled quantity

### **Example**

#### **Scenario: Limit Order with TP/SL**

* You submit a limit **Buy 1 BTC at $10,000**
* You enable TP/SL:
  * Take Profit: Trigger at $12,000, Limit Order at $11,900
  * Stop Loss: Trigger at $9,500, Market Order

Once the buy order is filled and 1 BTC is held long:

* The system automatically places two orders:
  * A **limit sell** at $11,900 triggered at $12,000 (Take Profit)
  * A **market sell** triggered at $9,500 (Stop Loss)

### **Frequently Asked Questions**

#### **Which Order Types Support Preset TP/SL?**

* **Supported:** Limit, Market, Post Only, IOC, and FOK open orders.

***

#### **If I Add to My Position Later, Does TP/SL Update?**

No. TP/SL only applies to the **initial main order**. Subsequent position increases **do not inherit** the previous TP/SL settings.

***

#### **Can I Set Multiple TP/SL Orders?**

Yes. Multiple TP/SL orders can be placed on the same position.

> The system will execute **whichever is triggered first**.

***

#### **What Does "Not in Effect" Mean?**

It means the TP/SL order is waiting for the **main order to be filled**. It will remain inactive until the position is opened.

***

### **Execution Summary**

Once the preset TP/SL is triggered:

* **Order Direction**: Opposite to the open position (e.g., Sell for Long)
* **Order Quantity**:
  * Limit TP/SL: Matches the main order quantity
  * Market TP/SL: Matches actual executed volume
* **Order Visibility**:
  * Appears in **Open Orders** and **Order History**

***

### **Tips for Using Preset TP/SL Effectively**

* **Use preset TP/SL** for strategic automation, especially when you're not actively monitoring the market.
* **Offset your TP limit price slightly** from your trigger price to improve execution.
* **Avoid placing full market TP/SL orders on large positions; instead, split them** into smaller orders to reduce slippage.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.coinlocally.com/perpetual-contracts/functions/take-profit-stop-loss-order.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.