CoinEx offers two trigger price options for Futures Take-Profit and Stop-Loss (TP/SL). After opening a position, you can set TP/SL and choose “Latest Price” or “Mark price” as the trigger price.
What are the "Latest Price" and "Mark Price"?
1. Latest Price
Latest Price refers to the real-time trading price of Futures market.
2. Mark Price
Mark Price is calculated based on Index Price and Moving Average Premium Index. CoinEx uses Mark Price as the reference price to determine whether forced liquidation occurs, which effectively protects users from unnecessary liquidation in the event of abnormal price swings caused by market manipulation or insufficient liquidity. For more details, please refer to What’s Futures Mark Price.
Usage Scenarios, Pros & Cons of “Latest Price” and “Mark Price”
1. Set "Latest Price" as the trigger price
Pros: When you set "Latest Price" as the trigger price for your TP/SL order, the execution price will be much closer to your expected trading price.
Cons: As forced liquidation is subject to "Mark Price" rather than "Latest Price", setting the latter as the trigger price means it may happen that when "Mark Price" hits the liquidation price, the "Latest Price" is still away from your SL trigger price. The impact is more pronounced when your SL trigger price is close to the liquidation price.
Usage Scenario: If you want the trigger price to be closer to your expected transaction (trading) price, you can choose “Latest Price" for your "Take Profit" order, so that the order can be executed faster.
2. Set "Mark Price" as the trigger price
Pros: Since CoinEx uses Mark Price to determine whether forced liquidation occurs, setting "Mark Price" as the trigger price reduces the risks of forced liquidation in spite of a stop loss.
Cons: TP/SL orders are executed at the "Latest Price", so when you set "Mark Price" as the trigger price, the actual execution price of your TP/SL order might deviate from your expected one due to price difference between "Mark Price" and "Latest Price".
Usage Scenario: It is recommended to select “Mark Price” as the trigger price of "Stop Loss", which can effectively reduce the risk of forced liquidation under abnormal market fluctuations.
How to Set Opening TP/SL
1. Tick the [TP/SL] checkbox when placing a new futures order, and unfold for more TP/SL parameters.
2. Choose price type, set trigger price within the required price range, and click [Confirm].
3. Click the edit button under [TP/SL] to check the details.
Note: If you need to modify the TP/SL parameters, you need to first cancel the current TP/SL settings, and then proceed to reconfigure them.
4. After the TP/SL order is successfully triggered, you can check the orders in [Order History].
Note: To reduce the risks caused by rapid market fluctuations, please set Take Profit & Stop Loss in Futures Trading in time.