Stop-loss and take-profit orders are used to manage risk. Take-profit orders can be used to lock in profits during volatile market conditions, while stop-loss orders help limit the amount of losses on a position.
Stop-loss and take-profit orders:
| Order Type | Asset occupancy status |
| Stop-loss order | After placing a stop-loss order, assets will be occupied even if the order is not triggered. |
How Stop Loss and Take Profit Orders Work
You can set the trigger price, order price (limit order) and order quantity of the stop-profit and stop-loss orders. When placing a stop-profit and stop-loss order, the order will occupy assets. Once the latest transaction price reaches the preset trigger price, the system will place a limit order or market order according to the preset order parameters.
Market orders will be executed immediately at the best available market price.
The limited order will be submitted to the order book and wait for execution at the order price. If the best bid/ask price is better than the order price, the limited order can be executed immediately at the best bid/ask price.
Since limited orders are affected by price fluctuations and order book liquidity, there is no guarantee that limited orders will be executed, so traders should be cautious.
example:
Assuming the current BTC price is 20,000 USDT, the following shows different scenarios of stop-loss orders at different triggers and order prices.
Stop-loss market sell order
Trigger price: 19,000 USDT
Order Price: N/A
When the latest transaction price reaches the trigger price of the stop-loss order (19,000 USDT), the system will trigger the stop-loss order and immediately place a market sell order. The asset will be sold at the best market price.
Stop-loss limit buy order
Trigger price: 21,000 USDT
Order price: 20,000 USDT
When the latest transaction price reaches the trigger price of the stop-loss order (21,000 USDT), the system will trigger the stop-loss order, and the limited buy order with an order price of 20,000 USDT will enter the order book and wait for execution. Once the latest transaction price reaches 20,000 USDT, the system will execute the order.
Stop-loss limit sell order
Trigger price: 21,000 USDT
Order price: 21,000 USDT
When the last traded price reaches the stop-profit trigger price of 21,000 USDT, the stop-profit order is triggered. Assuming the best bid price after the trigger is 21,050 USDT, the limited sell order will be immediately executed at a better price (higher) than the order price (21,050 USDT in this case).
On the other hand, if the price drops below the order price after the trigger, a limited sell order for 21,000 USDT will be placed in the order book waiting to be executed.
Note:
— The order price of a buy order must not exceed 110% of the trigger price, and the order price of a sell order must not be less than 90% of the trigger price. — Please note that the leveraged trading mode on the app currently does not support stop-loss orders. You can place stop-loss orders on the leveraged trading page on the computer web page. — If the trigger price you set is much higher than the current market price, your order may never be executed because the market price has not reached the price you set. — Please update your app version to the latest version.
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