Introduction to Take Profit & Stop Loss – Help Center

What is Take Profit & Stop Loss?

Take Profit and Stop Loss refer to setting a price in advance. When the market price (the pre-set execution price/mark price/index price) reaches the trigger price, the system will automatically place an order according to the pre-configured order type, price, and quantity. Through Take Profit and Stop Loss, users can better manage risk in volatile markets and ensure safe trading.

Related Terms and Parameters

Understanding the following key terms and parameters is crucial when using Take Profit & Stop Loss:

Trigger Price: When the market price reaches the trigger price, the system will activate the preset order.
Order Price: After the trigger price is activated, the system will execute the buy or sell order according to the order price.
Latest Price: The most recent transaction price in the market.
Mark Price: A price calculated by the platform to avoid market manipulation.
Index Price: A price based on the average price from multiple exchanges, reflecting the overall market price level.

Differences and Use Cases of Latest Price, Mark Price, and Index Price

Meaning	Suitable Scenario
Latest Price	The most recent price of a trade reflects the current market condition.
Mark Price	A price calculated by the platform to prevent market manipulation and irrational price fluctuations.
Index Price	A price derived from the average prices of multiple exchanges, providing a more comprehensive market price reference.

Take Profit & Stop Loss Types and Their Use Cases

Below is a brief introduction to the types of Take Profit and Stop Loss available on DeeBit Exchange and the recommended scenarios for each. For detailed instructions, please refer to:

How to Set Take Profit & Stop Loss
How to Set Trailing Orders/Trailing Take Profit
How to Set MMR Stop Loss

Type	Suitable Scenario
Order Take Profit & Stop Loss	Take Profit & Stop Loss that are set during order placement. After the opening order is completed, the corresponding Take Profit/Stop Loss order is placed.
Full Position Take Profit & Stop Loss	A Take Profit & Stop Loss set for an entire position. When the trigger condition is met, the entire position will be closed.
Partial Position Take Profit & Stop Loss	A Take Profit & Stop Loss set for a specific portion of an existing position. When the trigger condition is met, the corresponding portion of the position is closed.
Trailing Take Profit	A Take Profit strategy that follows the market fluctuations, automatically adjusting the trigger price based on market movement.
MMR Stop Loss	A Stop Loss order set based on the maintenance margin rate, which helps users control account risk.

Why Set Take Profit & Stop Loss?

In futures trading, market prices are often highly volatile, especially when leverage is used, which amplifies both profits and risks. By setting Take Profit & Stop Loss, users can automatically execute trades when the price hits a predefined trigger point, effectively locking in profits or controlling losses.

For example, if you purchase 1 BTC futures contract at 50,000 USDT with 10x leverage, and the market price rises to 55,000 USDT, you can set a Take Profit order to automatically close the position and secure a 50,000 USDT profit. Conversely, if the price falls to 48,000 USDT, the Stop Loss will automatically close the position, limiting the loss to 20,000 USDT.

Condition	Price (USDT)	Leverage	No Stop Loss Set Result	With Stop Loss Set Result
Buy 1 BTC Futures	50,000	10x	-	-
Market rises to	55,000	10x	No closure, profit may decrease if the market retraces	Take Profit closes the position, locking in 50,000 USDT profit
Market drops to	48,000	10x	No closure, losses will continue if the market falls further	Stop Loss closes the position, limiting the loss to 20,000 USDT

Conclusion

Take Profit & Stop Loss is a powerful risk management tool that helps you protect your investments and lock in profits in volatile markets. By understanding the differences between trigger price, order price, and the latest, mark, and index prices, users can better utilize these features for improved trading efficiency and market responsiveness.