Understanding Take-Profit and Stop-Loss Orders
Take-profit and stop-loss (TPSL) orders are advanced trading tools that allow you to automatically close positions at predetermined price levels. These orders freeze the corresponding portion of your position until triggered or canceled, visible in the "Current Orders" list.
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Key Terminology Explained
Trigger Price:
- Take-profit: The price level where your profit-taking order activates
- Stop-loss: The price level where your loss-prevention order activates
Order Execution Price:
- Can be set as market price (immediate execution at best available price)
- Or as limit price (specific price you specify)
Order Logic:
For long positions:
- Take-profit triggers above current price
- Stop-loss triggers below current price
For short positions:
- Take-profit triggers below current price
- Stop-loss triggers above current price
Practical Trading Scenarios
Case 1: Long Position Stop-Loss
- Position: BTC perpetual long @ $9,000
- Stop-loss: Trigger at $8,000
- Execution: Market order or limit order (e.g., $7,950)
Case 2: Short Position Stop-Loss
- Position: BTC perpetual short @ $9,000
- Stop-loss: Trigger at $10,000
- Execution: Market order or limit order (e.g., $10,050)
Case 3: Long Position TPSL
- Take-profit: Trigger at $10,000
- Stop-loss: Trigger at $8,000
- Executions: Separate market/limit orders for each
Case 4: Short Position TPSL
- Take-profit: Trigger at $8,000
- Stop-loss: Trigger at $10,000
- Executions: Separate market/limit orders for each
Important Rules to Remember
- Positions are frozen while TPSL orders are active
- Triggers require available margin in your account
- Market orders may not execute during extreme volatility
- Limit orders may remain unfilled if price doesn't reach specified level
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FAQ Section
Q: Can I modify a TPSL order after placement?
A: No, you must cancel and recreate the order with new parameters.
Q: Why didn't my stop-loss trigger during a price crash?
A: If the price gaps below your trigger level, execution occurs at next available price. Market orders don't guarantee exact price execution.
Q: Are there fees for TPSL orders?
A: Standard trading fees apply only upon successful execution.
Q: How long do TPSL orders remain active?
A: Until canceled, triggered, or position is closed.
Q: Can I set multiple TPSL orders?
A: Yes, but the total frozen amount cannot exceed your position size.
Q: Do TPSL orders work during system maintenance?
A: No, orders won't trigger during scheduled maintenance periods.