Take Profit, Stop Loss TP/SL
Take Profit / Stop Loss (TP/SL) Orders
What is a Take Profit / Stop Loss Order?
A Take Profit / Stop Loss (TP/SL) Order is a conditional order that automatically closes a position when a predefined trigger price is reached. It helps traders lock in profits or limit potential losses without needing to monitor the market continuously.
✅ Before triggering, the TP/SL order does not occupy margin. ❌ If there are insufficient funds when the order is triggered, it may fail to execute.
Types of TP/SL Orders
1. Limit Take Profit / Stop Loss
The order is placed at a specific price when the trigger condition is met.
May not fill immediately if the market does not reach your set limit price.
Parameters Required:
Trigger Price
Order Price
Order Quantity
Pros:
You control the price of execution.
Limits slippage.
Cons:
The order may not be filled if the market moves away.
Tip: To increase the success rate, set the order price slightly better than the trigger price. Example: For a long position TP at $60,000, use a limit price of $59,900.
2. Market Take Profit / Stop Loss
The order is placed at the market price once the trigger condition is met.
Designed for immediate execution.
Parameters Required:
Trigger Price
Order Quantity
Pros:
Executes quickly once triggered.
Cons:
No control over the exact fill price.
May cause slippage in volatile or illiquid markets.
Recommended Use Cases
Take Profit
Limit Order
Ensures profits at a known price
Stop Loss
Market Order
Ensures fast exit to reduce losses
Small Position
Market Order
Low slippage risk
Large Position
Limit or Split Orders
Reduce slippage risk in poor liquidity
Volatile Market
Limit Order
Avoid trigger from rapid price spikes
TP/SL Order Lifecycle
1. Pending Trigger
After submission, the TP/SL order waits in the Scheduled Orders List.
No margin is locked during this phase.
The order remains pending until the trigger price is hit.
2. Triggered
When the latest traded price meets the condition, the order is triggered.
The system submits the order (limit or market) according to your settings.
3. Order Submission
The TP/SL becomes an active order and appears in the Open Orders or Order History list.
Trigger Rules
Long Position (Sell to Close)
Take Profit
Latest Price ≥ Trigger Price
Stop Loss
Latest Price ≤ Trigger Price, and deviation is < 10%
Short Position (Buy to Close)
Take Profit
Latest Price ≤ Trigger Price
Stop Loss
Latest Price ≥ Trigger Price, and deviation is < 10%
In unstable markets, the system includes a "pin protection" mechanism. If the deviation between the latest price and the mark price exceeds 10%, stop-loss orders will not trigger, preventing false activation from price spikes.
Trigger Failure Scenarios
Insufficient Margin: If you lack sufficient funds to place the order, it will be unsuccessful.
Strong Liquidation: If the position is already being closed by the system's forced liquidation engine, the TP/SL trigger may fail.
Expired Orders: TP/SL orders automatically expire after 14 days if not triggered, which can be customized in the settings.
Examples
Limit Take Profit
Date: March 5, 2021
Entry: Long 10 BTC at $50,000
Plan: Take profit in 2 batches at $58,000 and $60,000
Order 1:
Trigger: $58,000
Limit Price: $57,900
Quantity: 5 BTC
Order 2:
Trigger: $60,000
Limit Price: $60,000
Quantity: 5 BTC
Outcome: The price reached $60,000 but fell rapidly. Order 1 filled, Order 2 triggered but not filled—the price dropped below $60,000 before the order could execute. Lesson: Set limit prices slightly better than trigger prices (e.g., $59,900 instead of $60,000).
Market Stop Loss
Date: March 14, 2021
Entry: Long 1,000 BTC at $60,000
Stop Loss Plan: Trigger at $54,000
Order:
Trigger Price: $54,000
Order Type: Market
Quantity: 1,000 BTC
Outcome: On March 23, BTC fell to $54,000. The stop order was triggered, and the system sold the entire position at an average price of $53,600 due to market slippage. Lesson: Use limit orders or batch market orders for large stop-loss positions to avoid slippage.
Summary
TP/SL Orders automate trade exits for both profit-taking and risk management.
Choose 'Limit' for precision, 'Market' for speed.
Utilize buffer zones to enhance fill rates on limit orders.
Consider batch orders for large positions in volatile markets.
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