Currently, our platform allows users to set Take Profit and Stop Loss (TP/SL) conditions for their entire positions at the time of order placement. This feature is crucial for risk management, a fundamental aspect of proficient trading. By setting predefined TP and SL conditions, traders can automatically close positions once specific market prices are hit. This automation reduces the need for continuous monitoring, especially during market fluctuations.
What distinguishes the Entire Position TP/SL setting from the TP/SL order types?
While both the Entire Position TP/SL and the Take Profit (TP), Stop Loss (SL) orders (found in the Advanced tab of the order form) contribute to risk management, they differ in execution and purpose.
Entire Position TP/SL: This feature is designed to efficiently close your entire position when the TP or SL is triggered. Unlike the Advanced Order TP/SL, there is no need to calculate position sizes.
Advanced Order TP/SL: Advanced TP and SL order types provide more flexibility, allowing traders to set specific TP and SL for a specific size. Traders can also use these order types to open new positions.
Triggering an Entire Position TP/SL adheres to the “One Cancels the Other” (OCO) principle, meaning the opposite setting will be automatically canceled.
What happens when Take Profit or Stop Loss is triggered?
When a preset TP or SL is triggered, the platform immediately places a market order to close your entire position, ensuring a timely exit from the market.
If I've already set a TP/SL for one position, and then input a new TP/SL for a subsequent order, what will happen?
If a subsequent order with a new TP/SL is filled, even partially, its TP/SL settings will replace the previous position's settings. This offers traders agility, enabling swift reactions to market shifts. Any partial fulfillment of an order will also update the existing TP/SL settings.
What will happen if I choose both the Reduce Only and TP/SL options simultaneously?
Combining "Reduce Only" and "TP/SL" in one order is not possible. The "TP/SL" feature is primarily devised to manage risk for new positions. If you're solely aiming to close a position, the "TP/SL" feature isn't relevant.
What happens when a reduced order is set with TP/SL ?
The TP/SL settings of the reduced order will not affect nor override the existing TP/SL settings.
If a user sets a limit buy order for 1 BTC at 20,000 USDT with TP/SL values of 30,000/10,000 and subsequently places a market sell order for 2 BTC with TP/SL values of 25,000/15,000 while the limit order remains unfilled, the TP/SL settings of the filled limit order will neither impact nor override the existing TP/SL settings of the entire position.