What’s Take Profit and Stop Loss (TP/SL)
With Take Profit and Stop Loss (TP/SL), you can preset the stop price for the current position, so when the market price reaches the preset stop price, your positions will be market closed as market orders.
Effectiveness of TP/SL
- Each TP/SL setting will only be triggered once, even when it only market closes part of your position. As soon as the TP/SL setting takes effect, the previous TP/SL price will be reset as 0, invalid for the remaining positions. Meanwhile, you can once more preset TP/SL setting for your remaining positions.
- In the same position, if you have preset to take profit and stop loss at the same time, as long as one of them is triggered but not completely closed, the other will still be invalid.
Example
Assuming that you Long (Buy) 10 BTC using BTCUSDT trading pair, all set for TP and SL. When the TP setting is triggered and 5 BTC are closed, the original SL setting will be invalid for the remaining 5 BTC.
Price Limit
|
Position Type |
Stop Price |
TP/SL |
|
Long (Buy) |
Stop Price > Current Price |
TP |
|
Liquidation Price ≤ Stop Price ≤ Current Price |
SL |
|
|
Short (Sell) |
Stop Price < Current Price |
TP |
|
Current Price ≤ Stop Price ≤ Liquidation Price |
SL |
Note
After the market price reaches the preset stop price, your order will be executed by the logic of the market order using Auction-style Liquidation Strategy. If the TP price you set is too high for a long position or too low for a short position, it may never be executed, since the market can't reach or exceed the preset price.