Take Profit and Stop Loss (TP/SL) are conditional orders that are added to your positions or orders. To add TP/SL targets, you can either set the target prices, set an offset in USDT amount or percentage, or set a PnL target. After an order is placed, you will be able to see your TP/SL orders in the position widget.
Adding TP/SL allows you to have more control over your positions in a volatile market. When the take profit or stop loss target is hit, it will be sent as a market order for execution.
1. How does a TP/SL order work?
- Full position TP/SL:
- When the price reaches one of the target prices, the position will be closed. TP/SL orders will execute as market orders when triggered
- Full position TP/SL are OCO orders. It means if one of the orders is triggered, the other order will be canceled automatically
- A position can only have one full position TP/SL on one side (long or short)
- TP/SL will auto-canceled if the position is closed
- Partial position TP/SL:
- When the price reaches one of the target prices, the set amount of the position will be closed. TP/SL orders will execute as market orders when triggered
- A position can only have up to 10 partial TP/SL on each side
- TP/SL will auto-canceled if the position is closed
- If a partially filled limit order’s partial position TP/SL is filled, the remaining limit order will be canceled
- When canceling a partially filled limit order with partial position TP/SL, the partial position TP/SL will not be canceled at the same time
2. How to add TP/SL orders to an existing position?
You can place take profit and stop loss in the Position widget
A pop-up screen will show when you click the add button under TP/SL associated with your positions.
When clicking the add button under the Full position section, you can set the full position TP/SL.
When clicking the add button under the Partial position section, you can set a partial TP/SL.
You can decide the quantity of the TP/SL, the Max button will set it as the remaining quantity.
You can set up to 10 partial TP/SL.
3. How to place a TP/SL order with a market/limit order?
When placing a market/limit order, you can choose to enable the TP/SL option on the order entry.
As the market/limit order gets filled, the TP/SL order will be activated for the position.
- A reduce only market/limit order cannot have a TP/SL attached to it. (Find out more about reduce-only orders here)
- TP/SL will only be placed when the market/limit order is filled or partially filled.
- If select "TP/SL: Full position", the TP/SL will be the full position TP/SL when the initial order was triggered, and the quantity of the TP/SL will be the entire position.
- If select "TP/SL: Partial position", the TP/SL will be the partial position TP/SL when the initial order was triggered, and the quantity of the TP/SL will be the same as the initial order.
For PERP symbols, you can select if you want the TP/SL orders be triggered by the mark price or the market price.
Please check out ▶ Indices for a detailed mark and market price explaination.
4. How to calculate the TP/SL target?
If the position or order is long, TP/SL will be short:
Offset in USDT amount:
- TP target = Open Price + Offset
- SL target = Open Price - Offset
Offset in percentage:
- TP target = Open Price * (100% + Offset)
- SL target = Open Price * (100% - Offset)
Offset in PnL:
- TP target = Open Price + PnL / quantity
- SL target = Open Price - PnL / quantity
Take profit target needs to be set higher than the market price; stop loss target needs to be set lower than the market price.
If the position or order is short, TP/SL will be long:
Offset in USDT amount:
- TP target = Open Price - Offset
- SL target = Open Price + Offset
Offset in percentage:
- TP target = Open Price * (100% - Offset)
- SL target = Open Price * (100% + Offset)
Offset in PnL:
- TP target = Open Price - PnL / quantity
- SL target = Open Price + PnL / quantity
Take profit target needs to be set lower than the market price; stop loss target needs to be set higher than the market price.
5. What if I set the wrong TP/SL price?
You can edit it on your portfolio widget.
6. When can TP/SL be used?
TP/SL can help control the profit and loss when there is volatility.
7. Extreme situation
Under volatile markets, a filled TP/SL order may result in the opening of a new position on spot pairs (including Margin trades if on Spot & Margin mode) if there are market/limit orders executed at around the same time as the TP/SL order being triggered.
For example, if a BTC long position is opened at 10000 BTC/USDT with a TP with a trigger price at 10010 and a limit sell order at 10009.99. It’s possible that the TP order will open a new position right after the limit order is filled.
To avoid the situation, putting the same side order extremely close to full position TP/SL is not suggested.