Take profit and stop loss (TP/SL) is a type of strategic order that allows traders to automate their exit strategies. Users can preset either:
- Price-based triggers: Specific price levels at which orders execute.
- Percentage-based triggers: Profit/loss thresholds relative to entry price.
When the market reaches these triggers, the system automatically submits the order. TP/SL configurations include:
- One-way: Single trigger (either take profit or stop loss).
- Two-way: Both triggers active simultaneously (one cancels the other upon execution).
Key Parameters Explained
1. Trigger Price
The order activates when the last traded price hits your preset trigger price.
2. Order Price
Determines the execution price after triggering. Two types exist:
Market TP/SL
- Executes as a market order once triggered.
- Note: Slippage may occur due to volatility, causing actual fill prices to differ from expected levels.
Limit TP/SL
- Submits a limit order at your specified price.
- Risk: Partial fills or non-execution if the market moves away from your limit price.
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Important Notes
Current Restrictions:
- Limit TP/SL only works for open positions and pending orders—not during initial trade entry.
Portfolio Mode (Same-Currency Pairs):
- Only one TP/SL parameter set applies per asset/direction combination.
Fee Structure:
- Limit orders don’t guarantee maker fees; taker fees apply if the order matches immediately.
Portfolio Mode Examples
| Scenario | Outcome |
|----------|---------|
| Order 1: ETH long with TP/SL set.
Order 2: ETH long (no TP/SL). | Order 2 inherits Order 1’s TP/SL. |
| Order 1: ETH long (no TP/SL).
Order 2: ETH long with TP/SL set. | Order 1 adopts Order 2’s TP/SL. |
| Order 1: ETH long with TP/SL-A.
Order 2: ETH long with TP/SL-B. | TP/SL-B replaces TP/SL-A. |
👉 Optimize TP/SL for portfolio trading
FAQ
Q1: Can I adjust TP/SL after order placement?
A1: Yes, but changes may override existing settings (see Portfolio Mode rules).
Q2: Why did my limit TP/SL fail to execute?
A2: This occurs if the market price didn’t touch your limit price after triggering.
Q3: How does slippage affect market TP/SL?
A3: High volatility can cause fills at prices worse than expected—use limit orders for precision.
Q4: Are TP/SL fees fixed?
A4: No, fees depend on whether your order acts as maker or taker during execution.
Q5: Does TP/SL work in stop-limit mode?
A5: Not directly; stop-limit requires separate configuration.
Disclaimer: Trading involves risk. Test strategies in a demo environment before live execution.