Take Profit and Stop Loss are types of conditional orders that allow traders to automate their trading strategy by setting predefined exit points. These orders help in managing risk and locking in profits without requiring constant market monitoring.
Take Profit: This order triggers when the market price reaches a predefined level set by the trader, ensuring that profits are realised.
Stop Loss: This order triggers when the market price reaches a predefined level set by the trader, limiting potential losses.
Setting Parameters
Trigger Price: The price level at which the take profit or stop loss order is activated.
Order Price: The price at which the order will be executed once the trigger price is reached.
Market Order: Executes at the best available market price once triggered. Due to market fluctuations, the actual execution price may differ from the set price.
Limit Order: Executes at the specified limit price or better. Due to market fluctuations, there might be no execution or partial execution based on the set price.
Notes:
1. Limit Orders: Currently, limit take profit and stop loss orders can only be set within existing orders and positions. They cannot be set when opening a new position.
2. Cross Margin Mode: When using cross margin mode, only one set of take profit and stop loss parameters is supported per currency and direction.
3. Fees: For limit take profit and stop loss orders, the fees charged may differ from the maker fee rate. In a matching market, makers are charged the maker fee, while takers are charged the taker fee.
Cross Margin Mode Examples
1. Order 1: Limit order for ETH long position with take profit and stop loss set.
Order 2: ETH long position opened at market price without taking profit or stop loss set.
In this case, Order 2 will inherit the take profit and stop loss prices from Order 1. Be sure to review existing take profit and stop loss prices when adding to positions.
2.Order 1: ETH long position without taking profit or stop loss set.
Order 2: ETH long position opened at market or limit price with take profit and stop loss set.
After Order 2 is executed, the take profit and stop loss prices from Order 2 will be applied to Order 1. Monitor existing take profit and stop loss prices when adding to positions.
3.Order 1: ETH long position with take profit and stop loss set at price A.
Order 2: ETH long position opened at market or limit price with take profit and stop loss set at price B.
After Order 2 is executed, the take profit and stop loss prices for the combined position will be updated to price B. Ensure awareness of existing take profit and stop loss prices when adding to positions.