In the dynamic world of cryptocurrency trading, managing risk and securing gains is paramount. A Take Profit (TP) and Stop Loss (SL) order is an essential tool that allows traders to automate this process. It is a pre-set instruction to close or reduce a contract position once the market price reaches a specified trigger price or a predetermined profit/loss percentage. This automated mechanism executes a market order for the set quantity, helping traders lock in profits or cap losses without constant market monitoring.
Core Concepts Explained
Trigger Price: Take Profit and Stop Loss
The Take Profit Price or Stop Loss Price is the critical price level you set. When the index price (or mark price) hits this predefined trigger, the system automatically activates the corresponding order. It then places a market order to reduce the position by the specified amount.
It is vital to understand that these orders are designed solely for closing or reducing an existing position. They will not open a new, opposite position upon triggering.
Order Quantity
This refers to the volume of the contract that will be closed once the order conditions are met. You specify this amount when setting up the order.
Modes for Take Profit and Stop Loss Orders
For USDT-margined perpetual contracts, BIT offers two distinct modes for TP/SL orders. The default setting is Partial Position mode, but you can switch between these modes via the "Trading Settings" in the upper-right corner of the trading interface.
- Partial Position Mode: This mode allows for granular control. You can set up to 10 separate TP/SL orders for a single position. Each order is independent and applies to only a portion of your total holding.
- Whole Position Mode: This mode provides a broader, single-order strategy. You can only set one TP and one SL order for the entire position. Any new TP/SL order you set will automatically overwrite the previous one.
The following table summarizes the key differences between these two modes:
| Feature | Partial Position Mode | Whole Position Mode |
|---|---|---|
| Number of Orders | Up to 10 TP/SL orders per position | 1 TP/SL order set per position |
| Order Scope | Each order applies to a partial quantity | The order applies to the entire position quantity |
| Order Overwrite | New orders are added without affecting others | A new order replaces the previous one |
Important Execution Note
When a TP/SL order is triggered, the system sends a market order to close the position. On BIT, market orders are IOC (Immediate-or-Cancel) orders. This means the order must be filled immediately at the best available market price. Any portion of the order that cannot be filled instantly is automatically canceled.
Consequently, in volatile market conditions or during periods of low liquidity (poor market depth), there is a risk that a market order may not be fully executed. The system will send you an email notification once a TP/SL order is triggered. We highly recommend monitoring the execution status of your orders due to this potential for partial fills.
The OCO (One-Cancels-the-Other) Relationship
Each set of Take Profit and Stop Loss orders functions as an OCO pair. This means the two orders are linked. If either the Take Profit or the Stop Loss is triggered, the other, un-triggered order is automatically canceled. Furthermore, if you manually close the entire position, all associated TP/SL orders are canceled.
The "Retry" Function for Enhanced Reliability
To mitigate the risk of partial execution inherent with IOC market orders, BIT's TP/SL (Market) feature includes an optional "Retry" function. If you enable this feature when setting your order, the system will attempt to re-submit any unfilled portion of the market order every second. This retry process continues for up to four attempts. If the order remains unfilled after four consecutive retries, the process is terminated, and the remaining portion is canceled.
This function provides an added layer of protection, increasing the likelihood of your entire position being closed at or near your desired price point, especially in fast-moving markets. 👉 Discover advanced order management strategies
How to Set a Take Profit and Stop Loss Order
During Order Placement
- Navigate to the USDT Futures Trading page.
- Choose either "Long" or "Short".
- Click on the "Take Profit/Stop Loss" option.
- Input the quantity and entry price for your BTC contract.
- Set your desired Take Profit and Stop Loss prices (or percentages).
- Click "Confirm", review all details, and finalize the order by clicking "Buy/Long" or "Sell/Short".
For an Existing Position
You can also attach or modify TP/SL orders for positions you already hold.
- Go to your "Positions" tab.
- Locate the desired position and click "Add Take Profit Stop Loss".
- Enter the quantity for the order and the trigger prices or ratios.
- Click "Confirm" to activate the order.
After creation, you can continue to manage these orders by clicking "Add Take Profit Stop Loss" for the same position.
Crucial Note: If you set a TP/SL order during the initial trade placement, it will only become active once the opening order reaches one of these two states:
- The order is fully filled.
- The order is partially filled, and the remaining, unfulfilled portion is canceled.
Frequently Asked Questions
What is the main purpose of a TP/SL order?
The primary purpose is automated risk management. A Stop Loss limits potential losses by closing a position if the market moves against you, while a Take Profit secures your profits by closing the position once it reaches a favorable price level, all without requiring you to watch the charts constantly.
Can a TP or SL order open a new trade?
No, it is crucial to remember that these are exit orders only. They are designed solely to close or reduce an existing position. They will never trigger a new,反向开仓 (reverse opening) or opposite position.
What happens if my market order doesn't fully execute?
Due to the IOC nature of market orders, partial fills are a possibility. This is why monitoring your order status is important. Enabling the "Retry" function can help, as the system will make up to four additional attempts to fill the remainder of the order over four seconds.
What is an OCO order in this context?
OCO stands for "One-Cancels-the-Other." Your Take Profit and Stop Loss orders for the same quantity of a position are linked. If the market hits your Take Profit price and that order executes, your Stop Loss order for that same amount is automatically canceled, and vice-versa. This prevents both orders from being active simultaneously after one has already been fulfilled.
Can I have multiple TP/SL orders on one trade?
Yes, but it depends on the mode you select. In "Partial Position" mode, you can set up to 10 individual TP/SL orders, each managing a part of your total holding. In "Whole Position" mode, you are limited to one set of TP/SL orders for the entire position.
Where can I find my active TP/SL orders?
After successfully placing them, you can view and manage all your active Take Profit and Stop Loss orders from the "Current Positions" section of your trading interface. 👉 Learn more about securing your trading positions