Stop-Loss and Take-Profit are conditional orders that automatically place a mark or limit order when the mark price reaches a trigger price specified by the user. If the mark price reaches or exceeds the trigger price, the Stop-Loss/Take-Profit order will be converted to a live order and placed in the order book. If the mark price does not reach the trigger price, the Stop-Loss/Take-Profit order will remain active until it is canceled or triggered.
If you’re placing a Stop-Loss/Take-Profit limit order:
The Trigger Price has to be set within the range stated below:
Instrument minimum tick size < Trigger Price < 200% of the current instrument mark price
The Limit Price should be within the bandwidth stated below:
Spot pairs:
Aggressive bandwidth: 15% of the Trigger Price
Passive bandwidth: 0.1x of the Trigger Price for Buy orders, 10x of the Trigger Price for Sell orders
Perpetuals and Futures contracts:
Aggressive bandwidth: 5% of the Trigger Price
Passive bandwidth: 50% of the Trigger Price
If you’re placing a Stop-Loss/Take-Profit market order, you need to enter the trigger price according to the conditions described above. Once the mark price reaches the trigger price, a mark order will be placed at the next available price.
Stop-Loss Order
Stop-Loss orders can help traders mitigate risk by automatically closing a long/short position if the price moves unfavorably. A Stop-Loss order can also be placed if the user does not have an open position.
A user can only place a Sell Stop-Loss order if the trigger price is below the current mark price, and a Buy order if the trigger price is above the current mark price.
Sample Stop-Loss Orders:
Advanced Order Type | Side | Mark Price (USD) | Trigger Price (USD) | Limit Price (USD) | Triggering Condition |
Stop-Loss Limit | Sell | 25,000 | 20,000 | 19,000 | If Mark Price <= 20,000 |
Stop-Loss Market | Buy | 25,000 | 50,000 | n.a. | If Mark Price >= 50,000
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Take-Profit Order
Take-Profit orders can help traders lock in a profit by automatically closing a position if the price moves favorably. A Take-Profit order can also be placed if the user does not have an open position.
Users can only place a Buy Take-Profit order if the trigger price is below the current mark price, and a Sell order if the trigger price is above the current mark price.
Sample Take-Profit Orders:
Advanced Order Type | Side | Mark Price (USD) | Trigger Price (USD) | Limit Price (USD) | Triggering Condition |
Take-Profit Limit | Buy | 20,000 | 19,000 | 18,000 | If Mark Price <= 19,000 |
Take-Profit Market | Sell | 20,000 | 25,000 | n.a. | If Mark Price >= 25,000
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