What is a Take Profit and Stop Loss Order

A Take-Profit and Stop-Loss Order refers to an order where a trader sets a trigger price, order price, and quantity in advance. Once the market price, mark price, or index price reaches the trigger price, the system will automatically execute the order at the specified price to close the position. This type of order is commonly used to manage position risks. A Take-Profit Order locks in profits when the market fluctuates, while a Stop-Loss Order helps minimize losses.

 

DeeBit Exchange offers three types of Take-Profit and Stop-Loss orders: Order Take-Profit and Stop-Loss, Position Take-Profit and Stop-Loss, and Plan Take-Profit and Stop-Loss.

1.Order Take-Profit and Stop-Loss: This order allows traders to set take-profit and stop-loss conditions for an existing order. Once the market price reaches the predefined trigger price, the system will automatically place the buy or sell order according to the preset price and quantity.

2.Position Take-Profit and Stop-Loss: This type of order triggers when the mark price, latest price, or index price hits the set trigger price, closing the position at the specified price. Once the position is closed, any previously set take-profit or stop-loss orders will be automatically canceled.

3.Plan Take-Profit and Stop-Loss: Traders can set specific conditions to determine when to take profits (lock in gains) or stop losses (limit losses), and also set order quantities to reduce positions gradually.

 

For more details on setting up Take-Profit and Stop-Loss orders, refer to the Take-Profit and Stop-Loss Guide.