How to Take Profit & Stop Loss in Futures Trading

What is Take-Profit & Stop-Loss (TP/SL)?

TP/SL can be realized by preset the stop price, and when the market price meets the stop price, all
positions will be closed at the market price systematically.

 

Where is the entry for TP/SL settings?

Log in to CoinEx, click [Futures], and you can view and set [TP/SL] in [Current Position].

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How to choose the price type in TP/SL?

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

1. Mark Price: The order will be triggered when the Mark Price reaches the Stop Price.

2. Latest Price: The order is to be triggered when the Latest Price reaches the Stop Price.

After TP/SL is set, when the Mark Price or the Latest Price reaches your preset Stop Price, your TP/SL
setting will be triggered and your position will be closed.

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How to set Take-Profit and Stop-Loss?

1. One-side: SL setting for Long/Short Positions

(1) Close Long position to stop loss

Assuming that you have long positions of BTCUSDT at an average entry price of 40,000 USDT, and intend to stop-loss when the market price drops to 39,000 USDT.

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

[Price Type] Latest price

[Stop Price] 39,000 USDT

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After setting, when the market price falls to 39,000 USDT, Stop-Loss will be triggered and the position will be closed at the market price. 

However, if you intend to close your long position to take profit, the Stop Price should be set higher than 40,000 USDT. 

 

(2) Close Short position to stop loss

Assuming that you have short positions of BTCUSDT at an average entry price of 40,000 USDT, and intend to stop-loss when the market price raises to 41,000 USDT.

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

[Price Type] Latest price

[Stop Price] 41,000 USDT

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When the market price rises to 41,000 USDT, Stop-Loss will be triggered, and the position will be closed at the market price.

However, if you intend to close short position to take profit, the Stop Price should be set lower than 40,000 USDT.

 

2. Both-side: TP/SL Setting for Long/Short Positions

(1) TP/SL for Long position

Assuming you have long positions of BTCUSDT at an average entry price of 40,000 USDT, and intend to take profit by closing the long position when the market price rises to 42,000 USDT, and stop loss when the market price drops to 39,000 USDT.

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

TP: [Price Type] Latest price     [Stop Price] 42,000 USDT

SL: [Price Type] Latest price     [Stop Price] 39,000 USDT

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When the market price rises to 42,000 USDT, Take-Profit will be triggered, and the Stop-Loss setting will be automatically canceled.

When the market price falls to 39,000 USDT, Stop-Loss will be triggered, and the Take-Profit setting will be automatically canceled.

 

(2) TP/SL for Short position

Assuming that you have short positions of BTCUSDT at an average entry of 40,000 USDT, and intend to take profit by closing the short position when the market price drops to 37,000 USDT, and stop loss when the market price rises to 41,000 USDT.

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

TP: [Price type] Latest price      [Stop Price] 37,000 USDT

SL: [Price type] Latest price      [Stop Price] 41,000 USDT

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When the market price drops to 37,000 USDT, Take-Profit will be triggered, and the Stop-Loss setting will be automatically canceled.

When the market price rises to 41,000 USDT, Stop-Loss will be triggered, and the Take-Profit setting will be automatically canceled.

 

Notes

1. The Take-Profit & Stop-Loss function is effective for the entire position, meaning, only all-position liquidation is supported, not partial liquidation. All positions will be completely closed when the preset price is triggered no matter you have increased or decreased the position before. After the liquidation, the unexecuted TP/SL settings will be automatically canceled.

2. The Take-profit & Stop-loss setting will be only triggered once. It will come to an end as long as the position is partially liquidated, and the original trigger price will be invalid for the rest of the position. You can reset the stop price for the remaining position.

3. Users can set either Take-Profit (TP) or Stop-Loss (SL) separately, or both at the same time. If the users set both TP and SL at the same time 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've got 10 contracts to short BTC, and have set TP/SL for all of them. When 5 contracts are closed due to triggering the take-profit setting, the previous stop-loss setting of these 5 contracts will be invalid at the same time and no longer applicable for the remaining positions.

4. The price type of [Stop Price] defaults to Mark Price, and users can choose [Latest Price] as needed.

5. The Stop Price cannot be adjusted once it is set. For resetting, please cancel it first then reset the price.

6. Trigger Price setting range

Take-Profit under Buy-Long Trigger Price > Latest Price
Stop-Loss under Buy-Long Liquidation Price ≤ Trigger price ≤ Latest Price
Take-Profit under Sell-Short Trigger Price < Latest Price
Stop-Loss under Sell-Short Latest Price ≤ Trigger Price ≤ Liquidation Price

7. Please be aware that due to the limited market depth of certain trading pairs, it’s possible that the SL/TP fails to be executed.