What is Take-Profit & Stop-Loss (TP/SL)?
With Take-Profit & Stop-Loss (TP/SL), you can preset the stop price for the current position. When the market price hits the preset stop price, the system will place market orders to close your position.
Where can I set TP/SL?
Method 1
1. After setting the price and amount on the "Futures Trading", check [TP/SL] to set the Take Profit and Stop Loss order.
2. Click [Advanced] to select the price type (Mark Price/Latest Price/Index Price) and set TP/SL conditions based on price change, rate of return, or PNL.
Method 2
After opening a position on the "Futures Trading", you can also view or set [Take Profit/Stop Loss] in [Current Positions].
How to choose the price type for TP/SL
1. Price Settings: To set take profit and stop loss, you need to specify the trigger price and the price type. There are three types of price:
- Mark Price: Calculated based on the index price and the moving average premium index.
- Latest Price: The price of the most recent trade displayed in real time on the contract trading order book.
- Index Price: A weighted average calculated based on spot market prices from multiple major exchanges.
After setting the take profit and stop loss prices, the position will be closed when the mark price, latest price, or index price reaches the preset level.
2. Advanced Settings: You can set take profit and stop loss by entering the price change percentage, rate of return, or PNL.
- Price Change: The system automatically calculates the trigger price based on the opening price and the input price change.
- Rate of Return: The system automatically calculates the trigger price based on the opening price, leverage, and desired rate of return.
- PNL (Profit and Loss): The system automatically calculates the trigger price based on the opening price, position size, and the specified profit or loss amount.
3. Position: You can choose to close the entire position or a partial position. If you select a partial position, you can either enter the quantity directly or adjust the percentage to set the closing amount.
How to set Take-Profit and Stop-Loss?
1. Set TP/SL separately (Take Stop-Loss by price change as an example)
(1) Stop Loss for Long Position:
Suppose you hold a long BTC position with an average entry price of 87212 USDT, and you wish to close the position if the price drops by 1%.
- Select [Price Type] as "Latest Price"
- Enter the [Trigger Price] or set the drop percentage to 1%, and the system will automatically calculate the trigger price.
- If the latest price drops by 1%, the system will close the position with the market order.
(2) Stop Loss for Short Position:
Suppose you hold a short BTC position with an average entry price of 87015 USDT, and you wish to close the position to stop loss if the price increases by 1%.
Select [Price Type] as "Latest Price".
Enter the [Trigger Price] or set the rise percentage to 1%, and the system will automatically calculate the trigger price.
- If the price increases by 1%, the stop-loss will be triggered, and the system will buy and close the position with a market order.
2. Set both TP and SL
(1) Long Position (Take Profit and Stop Loss by Price Change as an Example)
Suppose you hold a long BTC position with an average entry price of 86917 USDT. And you would like to:
- Take profit when the price increases by 2% (around 88638 USDT)
- Stop loss when the price decreases by 1% (around 86030 USDT)
You can set the parameters as follows:
- Take Profit: Select [Price Type] as "Latest Price," set the increase percentage to 2%(The system will automatically calculate the trigger price).
- Stop-Loss: Select [Price Type] as "Latest Price," set the decrease percentage to 1%(The system will automatically calculate the trigger price).
When the price reaches the corresponding level, the TP/SL order will be triggered to close the position.
(2) Short Position (Take Profit and Stop Loss by Price Change as an Example)
Suppose you hold a short BTC position with an average entry price of 87015 USDT. And you would like to:
- Take profit when the price decreases by 2% (around 85274 USDT)
- Stop loss when the price increases by 1% (around 87887 USDT)
You can set the parameters as follows:
- Take Profit: Select [Price Type] as "Latest Price," set the decrease percentage to 2%(The system will automatically calculate the trigger price).
- Stop-Loss: Select [Price Type] as "Latest Price," set the increase percentage to 1%(The system will automatically calculate the trigger price).
When the price reaches the corresponding level, the TP/SL order will be triggered to close the position.
Notes
1. Take profit and stop loss orders are triggered only once. Partial closing of a position is also considered a successful trigger, and the original take profit and stop loss prices become invalid for the remaining position. You can reset the take profit and stop loss for the remaining position.
2. For the same position, you can set either take profit or stop loss individually, or set both simultaneously. If both are set and one is triggered but does not fully close the position, the other will become invalid.
Example: You hold a 10 short BTCUSDT position and have set both take profit and stop loss. If the take profit is triggered and only 5 contracts are closed, the original stop loss setting will be automatically cancelled and will no longer apply to the remaining position.
3. The default price type for take profit and stop loss is "Mark Price". You can also choose "Latest Price" or "Index Price" according to your needs.
4. Acceptable range for setting trigger prices:
| Position type | Trigger price | TP/SL |
| Long | Trigger price > Latest/Index/Mark price | Take-Profit |
| Trigger price < Latest/Index/Mark price | Stop-Loss | |
| Short | Trigger price < Latest/Index/Mark price | Take-Profit |
| Trigger price > Latest/Index/Mark price | Stop-Loss |
5. In the event of extreme market volatility, take-profit and stop-loss orders may not be executed in a timely manner. For more details, please refer to Introduction to Futures Take-Profit and Stop-Loss (TP/SL)