Introduction to Trailing Orders / Trailing Take Profit

Tracking Order Introduction

Trailing Stop Profit

• When using trailing stop profit to close positions, carefully calculate the activation price and retracement margin to ensure the trailing stop order is activated when the position is profitable. During subsequent market fluctuations, the price trigger will automatically adjust, locking in more profits.
• If you hold a long position, your trailing stop profit order will be a market sell order. The activation price you set must be higher than the opening price or the latest transaction price of the position. If you don’t set an activation price, the trailing stop profit order will activate based on the latest transaction price.
• If you hold a short position, the trailing stop profit order will be a market buy order. The activation price you set must be lower than the opening price or the latest transaction price of the position. If you don’t set an activation price, the trailing stop profit order will activate based on the latest transaction price.

Main Features

• Retracement Margin Setting Users can set the retracement percentage or fixed price margin. When the price moves in a favorable direction, the trigger price will adjust accordingly. When the price retraces to the set margin, the system will automatically submit a market order.
• Activation Price Setting Users can choose to set an activation price. The tracking order will only be activated when the market price reaches the activation price. If no activation price is set, the order will immediately take effect.

Usage Scenarios

• Locking in Profits When the price of the position continues to rise, a tracking order can help users automatically lock in profits and avoid missing the right time to close the position during a price retracement.
• Limiting Losses In a market downturn, tracking orders can protect profits and prevent loss expansion due to sharp price retracements.
• Capturing Trends For traders capturing market rebounds or trend reversals, tracking orders can automatically execute orders at the right time, saving the hassle of frequent manual adjustments.

Examples

• Example 1:
  • A user holds a 1 BTC long position with an opening price of 50,000 USDT and expects the best exit price to be when the market price retraces 5%. The user sets the tracking order activation price at 52,000 USDT and the retracement margin at 5%. When the market price rises to 52,000 USDT and retraces 5% to 49,400 USDT, the system automatically executes a market order to close the position.

• Example 2:
  • A user holds a 1 BTC short position with an opening price of 50,000 USDT and expects the best exit price to be when the market price rebounds 5%. The user sets the tracking order activation price at 48,000 USDT and the retracement margin at 5%. When the market price drops to 48,000 USDT and rebounds 5% to 50,400 USDT, the system automatically executes a market order to close the position.

Important Notes

• Before the tracking order is triggered, it will not freeze margin or position. Please ensure that your margin or position is not occupied by limited orders or normal stop-profit/stop-loss orders.
• Tracking orders may not always be triggered successfully. They could fail due to position limits, insufficient margin, or the contract being in a non-trading state. A triggered market order will be executed as a regular market order (IOC type) and may not always be fully filled. Any unfilled or partially filled market orders will appear in the "History Orders" section.
• If the order is filled, it will close the corresponding position or open a new position based on the submitted order quantity. If the order fails, your position and margin will remain unaffected.
• The maximum quantity limit for tracking orders varies by contract and will be adjusted based on market changes.