Common Questions about Take Profit and Stop Loss – Help Center

Frequently Asked Questions (FAQs) on Take-Profit and Stop-Loss Orders

Q1: What Are Take-Profit and Stop-Loss Orders?

Take-Profit and Stop-Loss orders are pre-set instructions to close a position when the market price reaches a specified trigger price. They are commonly used to manage risk:

Take-Profit: Locks in profits when the market moves favorably.
Stop-Loss: Limits losses when the market moves against the position.

Q2: What Is an Order Take-Profit/Stop-Loss?

This refers to setting Take-Profit and Stop-Loss levels when placing an order. Users can specify trigger prices, and the system will automatically close the position when the latest price, mark price, or index price reaches the trigger price.

For setup instructions, refer to How to Set Take-Profit and Stop-Loss.

Q3: What Is a Position Take-Profit/Stop-Loss?

This refers to setting Take-Profit and Stop-Loss levels for an existing position.

For setup instructions, refer to How to Set Take-Profit and Stop-Loss.

Q4: What’s the Difference Between Order and Position Take-Profit/Stop-Loss?

Both require users to specify trigger prices, but:

Order Take-Profit/Stop-Loss: Tied to the order quantity.
Position Take-Profit/Stop-Loss: Tied to the current position quantity.

If a user already holds a position before placing an order, the Order Take-Profit/Stop-Loss only applies to the new order, not the existing position.

Q5: Which Order Types Support Take-Profit/Stop-Loss?

Take-Profit/Stop-Loss is supported by:

Limit Orders
Market Orders
Advanced Limit Orders

Q6: Why Didn’t My Take-Profit/Stop-Loss Trigger?

A1: The latest price, mark price, or index price did not reach the trigger price.
A2: If price deviation protection is enabled, the order may be rejected if the price difference exceeds the system threshold.

Q7: Why Was My Position Liquidated Despite Setting Take-Profit/Stop-Loss?

A1: DeeBit Exchange uses the Mark Price for liquidation. If the latest price deviates significantly from the marked price, the Take-Profit/Stop-Loss may not trigger before liquidation.
A2: Rapid market movements may cause liquidation and Take-Profit/Stop-Loss to occur simultaneously.

Q8: Why Didn’t My Take-Profit/Stop-Loss Execute After Triggering?

A1: For selling orders, if the order price is higher than the market price and the market continues to fall, the order may not be executed.
A2: For buying orders, if the order price is lower than the market price and the market continues to rise, the order may not be executed.

Note: In One-Way Position Mode, Take-Profit/Stop-Loss cannot be set if "Reduce-Only" is selected. In Two-Way Position Mode, Take-Profit/Stop-Loss can only be set for opening positions, not closing positions.

For more details on position modes, refer to How to Use Two-Way Position Mode and How to Adjust Margin Mode, Leverage, and Position Mode.

Common Issues with Take-Profit/Stop-Loss Orders

1.Why Didn’t My Take-Profit/Stop-Loss Trigger?

Ensure the trigger price is set correctly using the latest price, mark price, or index price.
Market depth, trading halts, or system issues may also cause trigger failures.

2.Why Is My Take-Profit/Stop-Loss Price Different from the Latest Price?

If using a Market Order, the order may be executed at the best available price, leading to slippage and a different average execution price.

3.Why Did My Take-Profit/Stop-Loss Fail After Triggering?

Common reasons include:

The execution price is below the bankruptcy price in Cross Margin Mode.
Rapid market movements trigger both stop-loss and liquidation simultaneously.
The order quantity exceeds the current position size.

Tips:

Set the Stop-Loss trigger price with sufficient distance from the liquidation price.
Manually check the order quantity to ensure it does not exceed the position size.

Important Notes

Manually closing a position will cancel all Take-Profit/Stop-Loss orders for that contract.
Take-Profit/Stop-Loss orders are "Reduce-Only" and will not open reverse positions.
DeeBit Exchange is not responsible for losses due to market volatility.

Note: The final interpretation of this product belongs to DeeBit Exchange. For further assistance, visit the DeeBit Exchange support page or contact our customer service team.