When creating a limit or market order on Bitrue you can additionally set up a take profit or stop loss threshold. The take profit/stop loss order will be placed immediately when the full order has been filled, based on the preset trigger price and order price.
Note:
The take profit/stop loss orders placed by the system after the limit order has been completely filled will be in the "Current Orders - Take Profit/Stop Loss" list. Take profit/stop loss orders can be canceled at any time before they activate.
1. What is an order with Take Profit and Stop Loss?
- An order with Take Profit (TP) and Stop Loss (SL) is a conditional trading feature that allows you to automatically manage the risk of your positions after buying or selling in spot trading.
- Take Profit (TP): When the price reaches your set target (above your buy price or below your sell price), it automatically sells or buys back to lock in profits.
- Stop Loss (SL): When the price falls to your set bottom line (below your buy price or above your sell price), it automatically sells or buys back to limit losses. For example, if you buy BTC at $1000 and set a take profit at $1200 and a stop loss at $900, the system will automatically execute these orders if the price reaches these points.
- For selling, Take Profit/Stop Loss can be understood as: buying the dip and buying into an uptrend.
- Take Profit (buying the dip): For example, if you sold BTC at $1000, a take profit order allows you to automatically buy it again if it reaches $800 or a lower price.
- Stop Loss (buying into an uptrend): For example, if you sold BTC at $1000 and the current market price is $1200, you may be optimistic about future price increases, so you may wish to buy it back at $1200 and capitalize on subsequent price increases.
2. How do I set up an order with Take Profit and Stop Loss?
- Go to the trading page and select Spot Trading, then enter your order quantity.
- Check the option to enable Take Profit and Stop Loss.
- Taking a market order as an example, use the Last Traded Price (LTP) as a reference to set your take profit price and stop loss price.
- For a buy order: Your take profit price should be > LTP, and your stop loss price should be < LTP.
- For a sell order: Your take profit price should be < LTP, and your stop loss price should be > LTP.
- After submitting your order, the system will monitor the market price and automatically place the order when triggered.
3. Why did my Take Profit and Stop Loss settings fail?
- Taking a market order as an example, failures can occur due to the following unusual circumstances:
- For buy orders:
- The stop loss price is higher than or equal to the Last Traded Price (LTP) (e.g., LTP $100, SL $101). This will result in an error message like: "Stop loss price must be lower than the Last Traded Price of $100."
- The take profit price is lower than or equal to the Last Traded Price (LTP) (e.g., LTP $100, TP $99). This will result in an error message like: "Take profit price must be higher than the Last Traded Price of $100."
- For sell orders:
- The stop loss price is lower than or equal to the Last Traded Price (LTP) (e.g., LTP $100, SL $99). This will result in an error message like: "Stop loss price must be higher than the Last Traded Price of $100."
- The take profit price is higher than or equal to the Last Traded Price (LTP) (e.g., LTP $100, TP $101). This will result in an error message like: "Take profit price must be lower than the Last Traded Price of $100."
- Common issues:
- Quantity not filled or incorrect order price. This will result in an error message like: "Please enter a valid quantity and order price first."
- Order is automatically canceled
- After the main order is filled, if market price fluctuations cause the buy quantity to fall below the minimum order size, the system will automatically cancel the take profit / stop loss order.
- Unable to place orders when buying at market price
- Due to market price fluctuations, when placing a market buy order, if the take profit trigger price for the sell order is too close to the main order’s market price, the order may fail. It is recommended to set the take profit trigger price further away from the current last traded price.
- Solution: Review your settings to ensure they meet the requirements, then resubmit.