Skip to main content

▶ Take Profit and Stop Loss

Ryen
  • Updated on

What are Take Profit (TP) and Stop Loss (SL) orders?

Take Profit (TP) and Stop Loss (SL) orders are conditional orders that help you manage your trading positions. These orders allow you to define exit points to lock in profits or limit losses in volatile markets.

How do TP/SL orders work?

Full position TP/SL

  • Closes your entire position using market orders when the target is hit.
  • These orders are “One Cancels the Other” (OCO): If the TP or SL order executes, the other is automatically cancelled.
  • Only one full position TP/SL can exist per position.
  • Full position TP/SL is automatically cancelled if the position is closed.
  • For spot symbols, TP/SL is triggered by the Last Price; for perpetual symbols, TP/SL can be triggered by either the Mark Price or the Last Price.

Partial position TP/SL

  • Closes a specified portion of your position when the target is hit.
  • Supports both market and limit orders for execution.
  • Operates on a “One Cancels the Other” (OCO) basis: If the TP or SL order executes, the other is automatically cancelled.
  • Allows up to 10 partial TP/SL orders on each side (long/short) per symbol.
  • Partial position TP/SL is automatically cancelled if the position is closed.

How to add TP/SL Orders to an existing position

  1. Locate Your Position:
    • Locate the portfolio widget on your trading interface.
    • Identify the position you want to manage.
  2. Set Your TP/SL:
    • Add Full TP/SL:
      1. Click “Add” for Full TP/SL.
      2. Set a single TP/SL target that applies to your entire position.
    • Add Partial TP/SL:
      1. Click “Add” for Partial TP/SL.
      2. Specify the desired TP/SL price targets and TP/SL quantity.  
      3. Click the “Max” button to automatically fill the remaining position quantity, if needed.
  3. Save Your Settings: Once you've configured your TP/SL orders, click “Submit” to activate them.

Place take profit and stop loss in the Position widget:

 

When clicking the Add button under Full TP/SL, you can set a full TP/SL for your position:

 

 

When clicking the Add button under Partial TP/SL, you can set a partial TP/SL for your position.

You may decide what quantity to add while monitoring the remaining quantity.

 

 

Set up to 10 partial TP/SL:

 

 

How to place TP/SL with new orders

  1. Locate Order Entry:
    • Set up your entry order.  TP/SL is supported for market, limit, stop market, stop limit orders.
  2. Set Your TP/SL
    • Select TP/SL type:
      1. Full Position TP/SL: Covers the entire position.
      2. Partial Position TP/SL: Matches the size of the initial order.
    • Enter TP/SL trigger price targets and trigger type
    • For advanced options, you can 
      1. Set a Offset  (in USDT or percentage above/below the entry price)
      2. Set aPnL target (profit or loss level).  
    • For partial positions, you may choose a limit order for execution.
  3. Save Your Settings: Once you've configured your TP/SL orders, click “Submit” to save them.
  4. Place Your Orders: Once you’ve set up your entry and TP/SL order, click “buy” or “sell” to place the orders.

Note on activation rules:

  • Full Position TP/SL:
    • Once your entry order (market/limit/stop) is partially or fully filled, the TP/SL for the full position is activated.
    • Example: For an order of 1 BTC, if 0.3 BTC is filled first, the full TP/SL will be activated.
  • Partial Position TP/SL:
    • As the entry order gets filled partially, the corresponding TP/SL is activated for the filled quantity.
    • If a partial TP/SL target is hit before the entry order is fully filled, the unfilled portion of the entry order is automatically canceled.
    • Example: For an order of 1 BTC, if 0.3 BTC is filled, TP/SL activates for 0.3 BTC. If another 0.2 BTC is filled, TP/SL updates for the new total of 0.5 BTC.  If TP or SL now gets triggered, the unfilled 0.5 BTC of the order will be canceled by the system.

As the market/limit order gets filled, the TP/SL order will be activated for the position:

 

You may also click on the "Advanced" button to have a full view of the TP/SL settings

 

 

  • 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 to be triggered by the mark price or the market price.

Please check out ▶ Indices for a detailed mark and market price explanation.

 

How to use TP/SL offsets?

For Long Positions:

  • Offset in USDT:
    • TP: Open Price + Offset
    • SL: Open Price - Offset
  • Offset in Percentage:
    • TP: Open Price × (1 + Offset%)
    • SL: Open Price × (1 - Offset%)
  • Offset in PnL:
    • TP: Open Price + (PnL / Quantity)
    • SL: Open Price - (PnL / Quantity)

For Short Positions:

  • Offset in USDT:
    • TP: Open Price - Offset
    • SL: Open Price + Offset
  • Offset in Percentage:
    • TP: Open Price × (1 - Offset%)
    • SL: Open Price × (1 + Offset%)
  • Offset in PnL:
    • TP: Open Price - (PnL / Quantity)
    • SL: Open Price + (PnL / Quantity)

 

What if I set the wrong TP/SL price?

 You can edit it on your portfolio widget:

 

Frequently Asked Questions (FAQs)

1. When should I use TP/SL?
TP/SL is especially useful in volatile markets to automatically secure profits or limit losses without needing constant monitoring.

2. How can I avoid TP slippage with TP/SL limit orders?

  • Use TP/SL limit orders to reduce slippage by specifying both a trigger price and a limit price.  
  • When the trigger price is hit, a limit order is placed at your set limit price ensuring order execution at or better than the limit price, avoiding unfavorable slippages during volatile market moves.  
  • Note:  If the limit price isn't reached, the order may remain unfilled.

3. Can SL be set worse than the liquidation price?

Yes, WOO X does not enforce SL to be set equal to or better than the liquidation price. However, liquidation will still occur if Mark Price hits the liquidation threshold.  Please review your SL price targets carefully.

4. Why was my position liquidated despite an active SL?

Possible reasons:

  • SL was set to be worse than the liquidation price
  • SL trigger type was set to last traded price whereas liquidation referenced the mark price, and there was a noticeable gap between them.
  • Executing the SL would result in your margin balance falling below the required maintenance margin level due to slippages

5. Can TP/SL open margin or perpetual positions under extreme scenarios?

  • Not for perpetual positions.  
  • For margin positions, in extreme volatility, a triggered TP/SL might unexpectedly open a new margin position if other orders execute simultaneously. 
  • To prevent this, avoid placing TP/SL and limit orders in close proximity.

Related articles