Take Profit & Stop Loss Orders
Introducing our latest feature - Take Profit and Stop Loss Orders 🎉
This new feature allows users to automatically close their position when predefined profit or loss thresholds are reached, so you can lock in gains and mitigate losses from open positions.
What are Take Profit and Stop Loss Orders?
Take Profit orders are orders placed to automatically close a position and realize profits when the market price reaches a predefined price level:
Long Position: higher than entry price
Short Position: lower than entry price
Stop Loss orders are orders placed to automatically close a position and minimize losses when the market price reaches a predefined price level:
Long Position: lower than entry price
Short Position: higher than entry price
✅ Benefits: It allows (1) better risk management and (2) flexibility to set specific buying/selling prices.
❌ Limitation: This can limit your profitability if the price moves in your favor.
How should I set the Take Profit and Stop Loss Orders?
Long Positions
Set it at a price level above the entry price where you wish to close the trade and take profit
Set it at a price level
below the entry price where you wish to close the trade and avoid further losses, and
above the liquidation price to prevent liquidation instead of just closing position
Short Positions
Set it at a price level below the entry price where you wish to close the trade and take profit
Set it at a price level
above the entry price where you wish to close the trade and avoid further losses, and
below the liquidation price to prevent liquidation instead of just closing position
When will the Take Profit and Stop Loss Orders be triggered?
Take Profit (TP)
TP Price < Mark Price
N/A
Take Profit is triggered where Mark Price = TP Price
TP Price > Mark Price
Take Profit is triggered where Market Price = TP Price
N/A
Stop Loss (SL)
SL Price < Mark Price
Stop Loss is triggered where Mark Price = SL Price
N/A
SL Price > Mark Price
N/A
Stop Loss is triggered where Mark Price = SL Price
What is Stop-Market Order?
Stop-Market Order is a stop order that is set to buy or sell a cryptocurrency at the market price once it has hit a specified stop price.
Example: You own 1 BTC, and you want to sell it only if the price drops to $45,000 or you want to buy BTC above $70000 as you predict it will break above .
✅ Benefits:
Helps protect profits and limit losses
Can be used for both buying and selling
Provides a layer of automation to your trading strategy
❌ Limitations:
Not guaranteed to execute if the stop price is not reached
Vulnerable to slippage, similar to market orders
When will Stop-Market Order be triggered?
Stop Price < Mark Price
Placed as Market Order
Stop-Market Order is triggered where Mark Price = Stop Price
Stop Price > Mark Price
Stop-Market Order is triggered where Mark Price = Stop Price
Placed as Market Order
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