Take-profit and stop-loss orders (formerly "trigger orders") refer to predefined conditional instructions that activate when the latest market price reaches a specified trigger level. Once triggered, the system submits a limit order based on the user's preset price and quantity parameters.
On OKX, if a user's order price meets the exchange's limit rules when triggered, the system executes it as a standard limit order. These orders serve as protective tools for futures traders—functionally, they're conditional limit orders comprising:
- A trigger price (activation threshold)
- An execution price (for take-profit/stop-loss)
Key Applications
Directional Flexibility
Unlike standard limit orders (which only capture favorable price movements), take-profit/stop-loss orders work bidirectionally—equally effective for:- Locking in profits (take-profit)
- Limiting losses (stop-loss)
Trend Strategy Integration
Particularly valuable when prices breach technical levels (e.g., resistance/support). Traders anticipating trend continuations use these orders to:- Enter positions strategically
- Exit positions defensively
Ideal User Profile
Conservative investors prioritizing:
- Capital Preservation (preventing catastrophic losses)
- Disciplined Trading (avoiding emotional decisions)
- Automated Risk Management (removing manual execution delays)
FAQs
Q1: How do take-profit/stop-loss orders differ from trailing stops?
A1: Trailing stops dynamically adjust trigger prices as the market moves favorably, whereas fixed take-profit/stop-loss orders use static price levels.
Q2: Can I modify an active take-profit/stop-loss order on OKX?
A2: Yes, pending orders can be edited or canceled before triggering.
Q3: Are there fee differences between these and regular limit orders?
A3: No—OKX applies identical fee structures to all order types.
Q4: What happens if the market gaps past my stop price?
A4: The order executes at the next available price, which may differ from your stop level during extreme volatility.