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Orders & Positions

Take Profit / Stop Loss (TP/SL)

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Take Profit and Stop Loss are conditional exit instructions. Reaching a trigger price activates the configured order; it does not guarantee a fill, an execution price, a profit or a maximum loss.

What is Take Profit?

Take Profit triggers an exit order when the configured reference price reaches the favorable trigger level.

For example, a long position opened at 20,000 has a Take Profit trigger at 20,600. Reaching that trigger activates the configured order; 20,600 is not a guaranteed execution price. Confirm the filled quantity, execution price and fees before evaluating the result.

What is Stop Loss?

Stop Loss triggers an exit order after an adverse price move, with the aim of reducing exposure.

For example, a long position opened at 20,000 has a Stop Loss trigger at 19,600. Reaching the trigger activates the configured order. Slippage, liquidity and order restrictions can affect execution; the trigger price does not set a guaranteed maximum loss.

Submission, triggering and execution

  1. Submit the conditional order and confirm its acceptance and saved conditions.
  2. Monitor the configured reference price, such as mark price or last traded price, according to the platform’s rules.
  3. When the conditions are met, the configured market or limit order is triggered.
  4. Check the resulting order status and actual fills. A partially filled order leaves the remaining position exposed.

A market order depends on available liquidity and trading restrictions. A limit order must satisfy its limit price and may remain unfilled. Triggering alone does not mean that a position is closed.

Setting Take Profit and Stop Loss

Where supported, configure these instructions when opening a position or for an existing position. Check the position direction, quantity, reference price, trigger price and execution method. For a limit order, also check the limit price. Available settings depend on the trading pair and platform configuration.

Take Profit, Stop Loss and liquidation

Take Profit and Stop Loss are user-configured conditional instructions. Liquidation follows the platform’s margin and risk rules. Setting a Stop Loss does not guarantee that it will fill before liquidation; different reference prices, market moves and execution conditions can affect the sequence.

Common misunderstandings

  • Treating the trigger price as a guaranteed execution price.
  • Assuming that a triggered order has closed the entire position.
  • Assuming that a triggered limit order must fill.
  • Ignoring fees, slippage and the remaining position after a partial fill.

Check the result

After submission or triggering, review the order status, filled quantity and remaining position. If the result is unclear, check existing orders before submitting another exit instruction. Contact platform support when an execution result needs investigation.

Summary

Take Profit and Stop Loss help automate exit instructions. Actual risk reduction depends on execution, not merely on setting or triggering an order.