What is a Take Profit /Stop Loss Order?
A Take Profit /Stop Loss order is to pre-set a trigger price and the order size to close/reduce a position. When the latest price or mark price reaches the trigger price, the system will place a market order with the pre-set order size, thus achieving a stop loss or stop gain on the position.
Terms
Take Profit Price/Stop Loss Price
When the index price or mark price reaches the Stop Loss / Take Profit price set by the user, the Take Profit /Stop Loss order will be triggered and a market order will be placed to reduce the position.
Quantity
The size of order placed after the trigger.
Please note a TP/SL order will only reduce or close a current position you hold, and will not open an opposite position
Take Profit / Stop Loss Order Mode
BIT supports two Take Profit /Stop Loss (TP/SL) modes: apply TP/SL on Selected Position or Entire Position. You can choose between two TP/SL modes in the trading settings on the top-right corner of the trading panel. You can pre-set a TP/SL when placing a limit or market order, or add/edit TP/SL in the position tab.
Selected Position - Up to 10 pairs of TP/SL orders are supported for a certain position. Each TP/SL applies to a portion of the position.
Entire Position - Only one pair of TP/SL orders is supported for the entire position. A new TP/SL order will overwrite all previous TP/SL orders.
The below table highlights the key differences between the two TP/SL modes.
TP/SL applied on Selected Position (default) | TP/SL applied on Entire Position | |
Trigger Type | Mark(default) or Index | Mark(default) or Index |
Number of TP/SL Orders that can be Placed | Up to 10 pairs of TP/SL orders on a certain position | Only 1 pair of TP/SL order that is applied on the entire position |
Increase the size of an existing position | The TP/SL set on the new order will correspond to the increased size of the position after the new order is executed. Note if the position already has 10 pairs of TP/SL set, the newly added TP/SL will not take effect . | The new TP/SL price set on the new order will replace the existing position TP/SL price after the new order is executed. |
Close the entire existing position | Cancel associated TP/SL orders | Cancel associated TP/SL orders |
A market order is triggered when the stop price is reached to close a portion of a position(Selected Position mode), or the entire position of a certain instrument (Entire Position mode). Market orders of BIT are IOC (immediate-or-cancel) orders, which attempt to execute immediately and cancel any unfilled portion. Therefore the market order triggered from a TP/SL may not get fully executed, or even get rejected under certain scenarios. Such scenarios include but not limited to:
There are not enough orders on the orderbook to be matched with
The available collateral within your account is not sufficient if the order gets executed
The order size exceeds the max market order quantity limit
You will receive an email notification once a TP/SL order is triggered. In the case of the above situations, we recommend you follow the TP/SL execution outcome.
Take-Profit and Stop-Loss are OCO(One-Cancels-the-Other) - when either TP or SL is triggered, the untriggered one of the same TP/SL pair will be automatically canceled. Closing the position also cancels associated TP/SL orders.
The "Retry" feature in the TP/SL (take-profit / stop-loss) function
In market TP/SL, if the take-profit or stop-loss is triggered, the system will place a market order to close the specified position. As the market order is IOC (Immediate or Cancel), there is a risk of partial execution when market depth is limited. If "Retry" is enabled, the system retries the unfilled quantity (if any) every 1.5s. If 0 fill persists for 4 consecutive retries, the process stops.
How to use Stop Loss/Profit orders?
Enter the [USDT-M futures] page, select [Buy/ Long] or [Sell/ Short], and then click the [TP/SL] box.
Enter the size of BTC contracts you want to open and the order price, and enter a take profit price and a stop loss price, then click on the confirm, then click [Buy/ Long] to complete the order.
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After the order is successfully placed, you can view the order in [Positions].
Please note: If you tick and set the TP/SL when placing an order, the TP/SL order will only take effect when the order reaches the following status: 1) the order is completely filled; 2) the order is partially filled and then the unfilled portion is cancelled
You can also add or edit the stop profit/stop loss order of a specified position on the position page.
Click [View TP/SL], then enter the order size of take profit/stop loss, take profit/stop loss price or percentage in the pop-up window, and click [Confirm] to place the order.
After placing the order, you can continue to click [View TP/SL] to manage the current take profit/stop-loss order.