Take profit and stop loss orders are essential risk management tools for traders. A take profit order allows you to lock in gains during market volatility, while a stop loss order helps limit potential losses.
Key Differences: Take Profit/Stop Loss vs. OCO vs. Conditional Orders
Understanding order types is crucial for effective trading:
| Order Type | Asset Reservation Status |
|---|---|
| Take Profit/Stop Loss | Assets are reserved immediately upon order placement, even before triggering. |
| OCO (One-Cancels-the-Other) | Only reserves margin for one side of the trade. Learn more about OCO orders here. |
| Conditional Orders | No assets reserved until trigger price is reached. |
How Spot Take Profit/Stop Loss Works
1. Placing Orders Directly in the Trading Panel
Configure trigger price, order price (for limit orders), and quantity. Upon triggering:
- Market orders execute instantly at the best available price.
- Limit orders enter the order book and may not fill if prices fluctuate.
Example Scenarios
| Scenario | Outcome |
|---|---|
| Market Sell (TP/SL) Trigger: 19,000 USDT | Sells immediately at market price when BTC hits 19,000 USDT. |
| Limit Buy (TP) Trigger: 21,000 USDT Order Price: 20,000 USDT | Limit order enters book at 20,000 USDT after trigger. Fills if price reaches 20,000 USDT. |
2. Preset TP/SL with Limit Orders (UTA Only)
Unified Trading Account (UTA) users can attach TP/SL orders to limit orders. These follow OCO logic—only one order executes.
Example
Limit Buy: 40,000 USDT for 1 BTC
- TP Limit: Trigger 50,000 USDT, sell at 50,500 USDT
- SL Market: Trigger 30,000 USDT
Outcomes:
- Price hits 50,000 USDT → TP limit order enters book; SL cancels.
- Price drops to 30,000 USDT → SL market order executes; TP cancels.
Important Notes
- Only UTA users can preset TP/SL. Upgrade here.
- TP trigger must be above limit buy price; SL trigger must be below.
- Order prices must comply with contract-specific limits (e.g., ±3% for BTC/USDT).
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FAQs
Q: Can I modify a TP/SL order after placing it?
A: Yes, but only before it’s triggered. Cancel and replace the order with updated parameters.
Q: Why didn’t my limit TP order fill?
A: Limit orders require matching liquidity. If the price doesn’t reach your order level, it may remain unfilled.
Q: Are TP/SL orders free to place?
A: No trading fees for placement, but standard fees apply upon execution.
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