Stop loss and take profit are types of strategy orders. This involves setting orders and trigger conditions in advance. When the latest market price, mark price, or index price reaches the preset trigger price, the pre-set order will be sent to the market at the order price to achieve stop loss, take profit, or trailing stop effects.
Stop loss and take profit are critical concepts in futures trading. When the market moves against your position, timely stop loss helps to preserve your funds. When the market moves in your favor, timely take profit locks in profits.
What is a Trigger Price?
A trigger price refers to the price at which a user’s buy or sell order is activated and executed on the exchange’s server. In other words, when the market price reaches the trigger price set by the user, the order is sent to the exchange’s server for execution.
How to Set Stop Loss / Take Profit?
- Before opening a position, check the option for stop loss and take profit to enter the preset stop loss and take profit settings page.
- On the specific position page, set stop loss and take profit: click [Position] — select the specific position you want to close — click [Stop Loss/Take Profit] — enter the [Stop Loss Trigger Price], [Take Profit Trigger Price], and [Quantity] — click [Confirm].
Notes:
- If the contract price does not reach the trigger price, the order will not be sent to the market. When the contract price reaches the trigger price, the order will be sent to the market at the order price.
- If the order is filled, it will either close your existing position or open a new one. If the order fails, your position and margin will remain intact.
- When triggering the order, if the order price triggers a limit price rule, the system will use the highest or lowest price of the limit order at that time.
- Before the order is successfully triggered, the position and margin will not be frozen. Stop loss and take profit orders are not guaranteed to trigger. They may fail due to price limits, position limits, insufficient margin, the contract being in a non-trading state, system issues, etc. A triggered limit order may not be filled, and any unfilled limit orders will appear in the current open orders.
- If there is significant market volatility, it is possible for the order not to be filled.
- If you need to quickly close all positions, you can select the specific position and click [Market Close All].