Understanding Take-Profit/Stop-Loss Orders
In our previous guide, we introduced the concept of take-profit/stop-loss (TPSL) orders. Let’s recap:
A TPSL order allows you to preset:
- A trigger price (when the market reaches this point, your order activates).
- A delegate price (the price at which your order enters the market).
Think of it as a limit order with an "on/off" switch—the trigger price. Once hit, your order launches into the market at your specified delegate price.
The 4 States of a TPSL Order
1. Pending Delegation
- The market hasn’t reached your trigger price.
- Your order waits passively.
2. Activated
- The trigger price is met.
- Your order enters the market (note: this doesn’t guarantee execution).
3. Delegation Failed
Trigger conditions are met, but:
- Your position is closed.
- Or, your position is locked (e.g., used as collateral).
- Result: Order cancels automatically.
4. Manually Canceled
- You revoke the order before the trigger price is hit.
How Execution Works: A Practical Example
Scenario: You’re long on a trade (opened at $80). Current market price: $56. You want to stop-loss at ~$55.
Set a TPSL Order:
- Trigger: $55
- Delegate: $53
Market Moves to $55:
- Order activates.
- Your sell order enters at $53.
Execution Logic:
- Any buyer offering ≥$53 will fill your order.
- If the market drops below $53, your order may partially fill or fail.
👉 Master advanced TPSL strategies here
FAQ
Q1: Can I modify a TPSL order after placement?
A: No—you must cancel and recreate it.
Q2: Why did my order fail even after triggering?
A: Check if your position was closed/locked before execution.
Q3: Is the delegate price the exact execution price?
A: No. It’s the minimum acceptable price (for sells) or maximum (for buys). Actual fills may vary.
Q4: How do I avoid slippage?
A: Set delegate prices closer to the trigger (e.g., $54.90 vs. $53).
Up Next: Advanced TPSL tactics (e.g., trailing stops, partial closes).
👉 Need live help? Contact OKEx’s 24/7 support
Disclaimer: This content is educational only. Trading carries risks—always DYOR (Do Your Own Research).
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