Take Profit and Stop Loss Order Guide for Futures Trading

Understanding Take Profit and Stop Loss Orders

Take Profit (TP) and Stop Loss (SL) orders are advanced trading tools that automatically close positions when predetermined price levels are reached. These orders help traders:

• Secure profits by closing positions at favorable prices (Take Profit)
• Limit losses by exiting positions before further downside (Stop Loss)

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Key Features

1. Two Implementation Methods:

   • During Position Opening: Set TP/SL simultaneously when placing limit orders
   • For Existing Positions: Add TP/SL to currently held positions

2. Order Execution:

   • Triggers when market price reaches specified levels
   • Executes as limit orders at predefined prices
   • Subject to market liquidity and volatility conditions

Setting Up TP/SL Orders

Method 1: During Position Opening (Web Platform)

Example Scenario (BTC/USDT Long Position):

• Entry Price: 17,000 USDT
• Take Profit: 25,000 USDT (anticipated resistance)
• Stop Loss: 15,000 USDT (key support breakdown)

1. Navigate to Futures Trading interface
2. Set your limit order parameters (price, quantity)
3. Click "TP/SL" to configure:
   - TP price (must be > entry for long positions)
   - SL price (must be < entry for long positions)
4. Submit combined order

Note: Orders remain inactive until the initial position opens

Method 2: For Existing Positions (Mobile App)

1. Go to "Positions" tab
2. Select desired position
3. Tap "TP/SL" button
4. Configure:
   - Trigger price (or percentage)
   - Execution price
   - Quantity
5. Confirm settings

Critical Considerations

1. Order Limits:

   • Maximum 30 active TP/SL orders per contract
   • Applies only to closing positions

2. Execution Rules:

   • Doesn't lock position quantity until triggered
   • Defaults to original order size
   • Adjusts for available position size if necessary

3. Order Relationships:

   • TP and SL orders are interdependent
   • Triggering one automatically cancels the other
   • All orders cancel when position reaches zero

4. Potential Failure Scenarios:

   • Extreme market volatility
   • Insufficient liquidity
   • Position/balance constraints
   • System maintenance periods

Platform-Specific Guides

Web Interface Features

• Real-time order status tracking
• Detailed execution history
• Multi-window monitoring

Mobile App Advantages

• One-tap order modifications
• Percentage-based triggers
• Push notification alerts

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Frequently Asked Questions

Q: Can I modify TP/SL orders after placement?

A: Yes, both web and mobile platforms allow modifications until triggered.

Q: What happens if my TP/SL order only partially fills?

A: The system will continue attempting to fill at your specified price until canceled or expired.

Q: Why didn't my stop loss trigger during a flash crash?

A: During extreme volatility, price gaps may bypass trigger levels. This emphasizes the importance of proper risk management.

Q: How are TP/SL orders different from trailing stops?

A: TP/SL uses fixed price levels, while trailing stops dynamically adjust with favorable price movement.

Q: Can I set TP/SL orders for both long and short positions?

A: Yes, the platform supports both directions with appropriate price parameters:

• Long positions: TP > Entry Price > SL
• Short positions: TP < Entry Price < SL

Best Practices

1. Always calculate appropriate risk-reward ratios before setting orders
2. Regularly monitor and adjust orders as market conditions change
3. Combine with other risk management tools for comprehensive protection
4. Test strategies in simulated environments before live implementation
5. Maintain sufficient margin to accommodate potential order execution

Disclaimer: Order execution depends on market conditions and isn't guaranteed. Past performance doesn't indicate future results.