Take Profit and Stop Loss (TP/SL) are conditional orders that you can add to your positions or orders. To add TP/SL targets, you can either set the prices directly or set an offset in USDT amount or in percentage terms. 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?
- When the coin price reaches one of the target prices, the position will be closed with a market order.
- 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 TP/SL on one side (long or short).
- For example, if you already have a buy TP/SL on $WOO, and you set a new take profit and no stop loss on $WOO, your $WOO position will be the new take profit and no stop loss.
- TP/SL will auto-canceled if the position is closed
2. How to add a TP/SL order to an existing position?
You can place a take profit, stop loss, or both in the Position widget
A pop-up screen will show when you click the pencil button under TP/SL associated with your positions.
You can set the target price or an offset for your take profit or stop loss order. The offset can be set in USDT amount or in percentage.
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 reduced only market/limit order cannot have a TP/SL attached to it.
- TP/SL will only be placed when the market/limit order is filled or partially filled.
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)
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)
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 or order widget.
6. When can TP/SL be used?
You can use TP/SL when there are big movements in the market and you want to control your profit or loss in case the price goes out of control before you can take action.