What is Take-Profit and Stop-Loss (TP/SL)?
Take-Profit/Stop-Loss (TP/SL) refers to a strategy that involves pre-setting the TP/SL trigger prices when placing an order to open a futures position. This setting will take effect as soon as the order is filled in the market. That is, when the market price reaches the preset trigger price, the system will automatically close the position.
TP/SL Triggering Rules
1. When there is no open position, you can only place a single order with TP/SL setting.
2. When there is an open position, the TP/SL setting can only be modified on this existing position.
Suppose you have submitted 2 orders in the same market, one without a TP/SL setting (Order 1) and the other with a pre-set TP/SL (Order 2). In this scenario, when Order 1 is filled first and opens a new position, the TP/SL setting of Order 2 becomes invalid, since there is already an open position in the market.
3. TP/SL will ONLY be triggered once. It is still considered successful even if the position is partially closed, in which case the original TP/SL prices will be reset to 0 and become invalid for the remaining position. But you can set TP/SL again for the remaining position.
4. If TP and SL are both set for the same position, triggering one of them will invalidate the other even if the position is only partially closed.
For example, you bought 10 BTCUSDT contracts with TP and SL both set. If TP is triggered and only 5 contracts are sold, the original SL setting will be invalid for the remaining 5 contracts.
TP/SL Price Limit (at the time of order submission)
| Position Type | Trigger Price | TP/SL |
| Long | Trigger price > Comparison price | TP |
| Trigger price < Comparison price | SL | |
| Short | Trigger price < Comparison price | TP |
| Trigger price > Comparison price | SL |
Comparison price definition:
Limit order / Stop limit order = Limit order price
Market order = Last executed price in the market
Stop market order = Trigger price of the stop order
Note: After the market price reaches the preset trigger price, the system will use Auction-style Liquidation Strategy and submit a market order to close the position. However, if the TP trigger price is too high (long) or too low (short), the market price may never hit the preset price and thus the order will not be executed.
TP/SL Price Limit (Effective)
If there is a price difference between the comparison price and the current price in the numerical definition, and the trigger price is set within the price difference range, then such TP/SL setting will not take effect.
| Order type | Comparison price | Trigger price |
Current price For the server to determine whether TP/SL takes effect |
|
Limit order / Stop limit order |
Limit order price *Price type: Latest market price |
The pre-set TP/SL price type and value |
The current price at the time when the new position is opened, whose type is associated with take profit/stop loss |
|
Market order |
Latest market price at the time of order submission | ||
| Stop market order |
Trigger price *Price type: subject to user setting |
How to Set 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.