# Take Profit & Stop Loss Orders

Introducing our latest feature - **Take Profit and Stop Loss Orders** :tada: 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? | Direction | Take Profit Order | Stop Loss Order | | ------------------- | --------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **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)** | Scenario | Triggering Condition (Long Positions) | Triggering Condition (Short Positions) | | --------------------- | ------------------------------------------------------ | ---------------------------------------------------- | | 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)** | Scenario | Triggering Condition (Long Positions) | Triggering Condition (Short Positions) | | --------------------- | -------------------------------------------------- | -------------------------------------------------- | | 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? | Scenario | Triggering Condition (Long Positions) | Triggering Condition (Short Positions) | | ----------------------- | ------------------------------------------------------------ | ------------------------------------------------------------ | | 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 |

{% hint style="info" %} Stop-Limit Order is coming soon. Stay tuned! :loudspeaker: {% endhint %}