How to Take Profit & Stop Loss in Futures Trading

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 post market orders to close your position.

 

Where can I set TP/SL?

Visit CoinEx official website (https://www.coinex.com), log in to your account, click [Futures] - [Futures Markets], and you can view and set [TP/SL] in [Current Position].

 

How to choose the price type for TP/SL

For TP/SL settings, you need to preset a stop price and the price type: Mark Price (default) or Latest Price.

1. Mark Price: TP/SL will be triggered when the Mark Price reaches the Stop Price.

2. Latest Price: TP/SL will be triggered when the Latest Price reaches the Stop Price.

 

How to set Take-Profit and Stop-Loss?

1. Set TP or SL separately (Take SL for example)

(1) Long position

Assuming that you have a BTCUSDT long position at an average entry price of 26,000 USDT, and intend to stop loss when the market price drops to 25,000 USDT.

Here's how you can set your Stop-Loss order:

[Price Type] Latest price

[Stop Price] 25,000 USDT

When the market price drops to 25,000 USDT, Stop-Loss will be triggered and the position will be closed at the market price. 

However, if you intend to take profit, the Stop Price should be set higher than 26,000 USDT. 

 

(2) Short position

Assuming that you have a BTCUSDT short position at an average entry price of 25,000 USDT, and intend to stop loss when the market price goes up to 27,000 USDT.

Here's how you can set your Stop-Loss order:

[Price Type] Latest price

[Stop Price] 27,000 USDT

When the market price rises to 27,000 USDT, Stop-Loss will be triggered, and the position will be closed at the market price.

However, if you intend to close the short position to take profit, the Stop Price should be set lower than 25,000 USDT.

 

2. Set both TP and SL

(1) Long position

Assuming you have a BTCUSDT long position at an average entry price of 26,000 USDT, and intend to take profit when the market price rises to 28,000 USDT, and stop loss when the market price drops to 25,000 USDT.

Here's how you can set your TP/SL order:

TP: [Price Type] Latest price     [Stop Price] 28,000 USDT

SL: [Price Type] Latest price     [Stop Price] 25,000 USDT

When the market price rises to 28,000 USDT, Take-Profit will be triggered, and the Stop-Loss setting will be automatically canceled.

When the market price falls to 25,000 USDT, Stop-Loss will be triggered, and the Take-Profit setting will be automatically canceled.

 

(2) Short position

Assuming that you have a BTCUSDT short position at an average entry price of 25,000 USDT, and intend to take profit when the market price drops to 20,000 USDT, and stop loss when the market price rises to 27,000 USDT.

Here's how you can set your TP/SL order:

TP: [Price type] Latest price      [Stop Price] 20,000 USDT

SL: [Price type] Latest price      [Stop Price] 27,000 USDT

When the market price drops to 20,000 USDT, Take-Profit will be triggered, and the Stop-Loss setting will be automatically canceled.

When the market price rises to 27,000 USDT, Stop-Loss will be triggered, and the Take-Profit setting will be automatically canceled.

 

Notes

1. Take-Profit & Stop-Loss works on the entire position. That is, it only allows closing the entire position, partial liquidation is not supported. When TP/SL is triggered, the entire position will be closed no matter whether you have added or reduced the position. If you manually close the position, the TP/SL settings will be automatically canceled.

2. Take-profit & Stop-loss will be triggered only once. They are considered successfully triggered even if the position is partially closed. After a partial close, the previous settings will not apply to the remaining position. You will need to set new stop prices for the rest of the position.

3. You can set either Take-Profit (TP) or Stop-Loss (SL) separately, or both at the same time. If you set both TP and SL for the same position, when one of them is triggered but the position is not completely liquidated, the other will be canceled automatically.

For example, you sold 10 contracts to short BTC, and set both TP and SL. When TP is triggered and only closes half of the position, the previous SL setting will no longer applies to the remaining positions.

4. The default price type for [Stop Price] is Mark Price. You can choose [Latest Price] when needed.

5. Take-Profit & Stop-Loss does not support editting the stop price. If you need to change it, please cancel the existing one first and set a new one.

6. Acceptable range for setting trigger prices

Take-Profit (Long) Trigger Price > Latest Price
Stop-Loss (Long) Liquidation Price ≤ Trigger price ≤ Latest Price
Take-Profit (Short) Trigger Price < Latest Price
Stop-Loss (Short) Latest Price ≤ Trigger Price ≤ Liquidation Price

7. During high volatility, the market price may fluctuate widely from the stop price, potentially causing failure to trigger or fill the TP/SL order. For more details, please refer to Explanation For Why Take Profit & Stop Loss Will Be Canceled.