What is Take Profit/Stop Loss?
In summary, Take Profit/Stop Loss is a trading strategy where traders reduce their positions to secure profits when the price reaches a critical point. It helps convert potential profits into actual ones that can be withdrawn.
Stop loss is a common practice in futures trading. Traders choose to exit a trade at a specific price level to prevent significant losses. It's a risk management technique that minimizes potential damage to their portfolio.
At CoinCatch, users can set take-profit/stop-loss orders at desired prices. When the market price hits those prices, the position is automatically closed at the best available price based on the order quantity.
How to set the take profit and stop loss orders?
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Set the Take Profit/Stop Loss when placing an order as shown below:
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Set the Take Profit/Stop Loss when holding a position as shown below:
When to use Take Profit/Stop Loss?
Under normal circumstances, when the user has a position and can not track the market for a long time, he can consider using TP/SL to place an order. But in principle, as long as the user has a position, he can use take profit/stop loss according to his actual needs under any circumstances.
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Can take profit and stop loss only close positions?
Yes. Take Profit and Stop Loss orders can only reduce existing positions. Trigger orders or limit orders can be used to open positions.
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Are Take Profit and Stop Loss orders tied to open positions?
Yes, Take Profit/Stop Loss orders are based on your current position. You cannot place Take Profit/Stop Loss orders when you have no open positions. You can set the order quantity according to the realizable quantity of the position.
In other words, if your position is 500 contracts, the maximum number of contracts that can be set for a Take Profit/Stop Loss order is 500 contracts. However, if you have placed a limit order to close the position of 100 contracts before setting the take profit, and the stop loss is set, the quantity that can be closed at this time becomes 400. After the limit order is executed and all of them are executed, the maximum stop-loss quantity of the position will be automatically reduced to 400.
You cannot place Take Profit/Stop Loss orders when you have no open positions.
How to cancel the Take profit and stop loss order?
In your current plan list, TP/SL orders will be displayed in the list with separate tabs (Take Profit, Stop Loss), and you can manually cancel them on the Tradingview chart integrated in the CoinCatch trading interface (as shown below). When a position is manually closed via a Take Profit or Stop Loss, the uncompleted Take Profit/Stop Loss order will be automatically canceled.
Will Take Profit and Stop Loss fail?
On extremely rare occasions and in extremely illiquid trading situations, a Stop Loss or Take Profit order may not be fully completed, although this rarely occurs in actual trading. More commonly, during periods of high volatility and price volatility, the actual price at which the order is executed may differ from the price at the time of the stop loss or take profit order. Take Profit/Stop Loss orders may not be filled or not fully filled.
Notes:
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If the position is closed, any take-profit and stop-loss orders will be canceled.
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The expected liquidation price changes caused by manual margin adjustment may lead to the failure of stop loss.
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Up to 20 Take Profit/Stop Loss orders can be set.
Risk Warning
If the market fluctuates greatly, it may happen that the TP/SL order cannot be executed or cannot be completely executed. Please be sure to understand the functional principle in detail and use it with caution!
When the latest transaction price in the market reaches the take profit/stop loss price you set, the contract quantity you set for this position will be placed in the pending order at the best transaction price.
Coincatch is not responsible for any loss of assets due to market price fluctuations.
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