What is Take Profit?
Take Profit allows you to determine how much you are willing to make from a trade.
When you have set up Take Profit, it will create a Limit Order for your position. This specifies the exact price that your position will automatically close at in order to lock in your profits.
What is a Limit Order?
The orders you submit for Take Profit are Limit Orders. These buy or sell contracts at a specified price, or better. A Take Profit limit order means that it will close your position automatically with the available quantity when the contract price reaches the Take Profit price or better.
All Take Profit orders are made on a Good-Till-Canceled (GTC) basis. This means that the order will stay as an open order until either the order is fully filled or it gets canceled.
Why is Take Profit important?
By setting up Take Profit, you can better manage the profit and loss for your position(s) when placing an order. You can also freely adjust the Take Profit level for your trade position(s) anytime. Therefore, you don’t have to constantly monitor and close your position(s) manually in order to lock in your profits early.
Are there any limitations on setting up Take Profit?
You can set up Take Profit for both Strike Options and UpDown Options that are offered by Crypto.com | Derivatives North America.
The same Take Profit order will apply to all contracts in a position. For example, if you have an open BTC Strike Options long position at a Strike Price of US$70,000 and a size of 10 contracts, the Take Profit order will apply for all 10 contracts at the same Take Profit price.
However, you can set up different Take Profit orders for other positions. Assuming you have another open BTC Strike Options long position at a Strike Price of US$71,000 with a size of five contracts, you may set up a Take Profit order at a different Take Profit price for this position.
If you are setting up Take Profit for your Rolling Strike Options position, please be reminded that the Take Profit level will apply to the existing position only, and will not carry over to the next position initiated by auto-rolling.
For the same position, you can either set up Take Profit or Stop Loss for the same position, but you can freely change your settings even after the position has opened. For example, you can cancel your original Stop Loss order and create a new Take Profit order before your position is closed or expired.
How many types of Take Profit settings are available?
You can set up your Take Profit order by defining how you would like the Take Profit (Limit) order be executed based on one of the following:
Contract Price
Profit in dollar amount
Profit in percentage
Contract price
The contract price you set will be used to create the Take Profit order as Take Profit Price. The order will be filled at exact Take Profit Price if there is sufficient liquidity.
Profit in dollar amount
The profit amount you set (in $) refers to the total profit that you may earn from the entire position after deducting fees.
A contract price that most closely matches the profit amount you set will be calculated and used to submit your Take Profit order.
If you have a Long position, the formula below will be used to calculate your Take Profit order price, rounded up to the contract’s tick size.
Take Profit Contract Price = Average Entry Price + (Profit Amount / No. of Contracts + (Exchange Fee + Technology Fee) * 2) * Tick Size / Tick Value
If you have a Short position, the formula below will be used to calculate your Take Profit order price, rounded down to the contract’s tick size.
Take Profit Contract Price = Average Entry Price - (Profit Amount / No. of Contracts + (Exchange Fee + Technology Fee) * 2) * Tick Size / Tick Value
Assuming you have defined the Profit Amount to be $100
Example 1 - You have a long BTC Strike Options position:
Number of Contracts = 50
Exchange Fee per contract = $0.15
Technology Fee per contract = $0.14
Tick Size = 0.10
Tick Value = $0.10
Average Entry Price = $5.00
The Take Profit (limit) order price will be:
= $5+($100/50+($0.15+$0.14)*2)*0.1/$0.1
= $7.60 (round up from $7.58 to the contract’s tick size)
Example 2 - You have a short BTC Strike Options position:
Number of Contracts = 50
Exchange Fee per contract = $0.15
Technology Fee per contract = $0.14
Tick Size = 0.10
Tick Value = $0.10
Average Entry Price = $5.00
The Take Profit (limit) order price will be:
= $5-($100/50+($0.15+$0.14)*2)*0.1/$0.1
= $2.40 (round down from $2.42 to the contract’s tick size)
Example 3 - You have a long ETH UpDown Options position:
Number of Contracts = 1
Exchange Fee per contract = $1.00
Technology Fee per contract = $0.99
Tick Size = 1
Tick Value = $2.50
Average Entry Price = $3,550
The Take Profit (limit) order price will be:
= $3,550+($100/1+($1.00+$0.99)*2)*1/$2.5
= $3,592 (round up from $3,591.59 to the contract’s tick size)
Example 4 - You have a short ETH UpDown Options position:
Number of Contracts = 1
Exchange Fee = $1.00
Technology Fee =$0.99
Tick Size = 1
Tick Value = $2.50
Average Entry Price = $3,550
The Take Profit (limit) order price will be:
= $3,550-($100/1+($1.00+$0.99)*2)*1/$2.5
= $3,508 (round down from $3,508.41 to the contract’s tick size)
Profit in percentage
The profit you set in percentage terms refers to the total profit % gain from the entire position after deducting fees.
A contract price that most closely matches the profit % you set will be calculated and used to submit your Take Profit order.
If you have a long position, the formula below will be used to calculate your Take Profit order price, rounded up to the contract’s tick size.
Take Profit Contract Price = (1 + Profit %) * (Average Entry Price + (Exchange Fee + Technology Fee) * Tick Size / Tick Value) - Profit % * Floor Price + (Exchange Fee + Technology Fee) * Tick Size / Tick Value
If you have a short position, the formula below will be used to calculate your Take Profit order price, rounded up to the contract’s tick size.
Take Profit Contract Price = (1 + Profit %) * (Average Entry Price - (Exchange Fee + Technology Fee) * Tick Size / Tick Value) - Profit % * Ceiling Price - (Exchange Fee + Technology Fee) * Tick Size / Tick Value
Assuming you have defined the profit in percentage = 50%
Example 1 - You have a long BTC Strike Options position:
Number of Contracts = 50
Exchange Fee per contract =$0.15
Technology Fee per contract = $0.14
Tick Size = 0.10
Tick Value = $0.10
Average Entry Price = $5.00
Floor Price = $0.00
The Take Profit (limit) order price will be:
= (1+50%)*($5+($0.15+$0.14)*0.1/$0.1)-50%*($0)+($0.15+$0.14)*0.1/$0.1
= $8.30 (round up from $8.23 to the contract’s tick size)
Example 2 - You have a short BTC Strike Options position:
Number of Contracts = 50
Exchange Fee per contract = $0.15
Technology Fee per contract = $0.14
Tick Size = 0.10
Tick Value = $0.10
Average Entry Price = $5.00
Ceiling Price = $10.00
The Take Profit (limit) order price will be:
= (1+50%)*($5-($0.15+$0.14)*0.1/$0.1)-50%*($10)-($0.15+$0.14)*0.1/$0.1
= $1.70 (round down from $1.78 to the contract’s tick size)
Example 3 - You have a long ETH UpDown Options position:
Number of Contracts = 1
Exchange Fee per contract = $1.00
Technology Fee per contract = $0.99
Tick Size = 1
Tick Value = $2.5
Average Entry Price = $3,550
Floor Price = $3,500
The Take Profit (limit) order price will be:
= (1+50%)*($3,550+($1+$0.99)*1/$2.5)-50%*($3,500)+($1+$0.99)*1/$2.5
= $3,577 (round up from $3,576.99 to the contract’s tick size)
Example 4 - You have a short ETH UpDown Options position:
Number of Contracts = 1
Exchange Fee per contract = $1.00
Technology Fee per contract = $0.99
Tick Size = 1
Tick Value = $2.5
Average Entry Price = $3,550
Ceiling Price = $3,600
The Take Profit (limit) order price will be:
= (1+50%)*($3,550-($1+$0.99)*1/$2.5)-50%*($3,600)-($1+$0.99)*1/$2.5
= $3,523 (round down from $3,523.01 to the contract’s tick size)
How to set up Take Profit?
There are two ways to set up Take Profit - when you are placing a trade or when you are managing an open position.
Method 1 - When placing a trade
Select a contract (Strike or UpDown Options) to trade
Tap Advanced Trading Options on the trading screen
Toggle on Take Profit in the Advanced Trading Options menu
Select a Take Profit type from the dropdown menu
Input a valid amount/value based on the selected Take Profit type
Tap Confirm to save your Take Profit setting.
The Take Profit order will only be created after your trade has been successfully executed. If the trade fails to execute, the Take Profit order will not be created and you will receive a push notification.
Method 2 - When managing an open position
Review the details of your open position
Tap Position Details at the bottom of the screen
Tap Take Profit to set it up or amend an existing setup
Toggle on Take Profit in the Advanced Trading Options menu
Select a Take Profit type from the dropdown menu
Input a valid amount/value based on the selected Take Profit type
Tap Confirm to submit the Take Profit order
The Take Profit order will be created after you click the ‘Confirm’ button. If the Take Profit order fails to create, you will be notified by a push notification.
Can I change my Take Profit setting after confirming it?
You may change your existing Take Profit setting anytime before the position is closed or expired by using one of the methods above (detailed in How to set up Take Profit).
You may also remove a Take Profit setting anytime before the position is closed or expired by using one of the methods above (detailed in How to set up Take Profit) to toggle off Take Profit and tap “Confirm”.
If you are changing your Take Profit order when placing a trade for the same instrument, the Take Profit order will only be updated after your trade has been successfully executed. If the trade fails to execute, the Take Profit order will not be amended.
Why can’t I see the latest status of my Take Profit order in my transaction history?
A Take Profit order will be shown in your transaction history when it is either completely filled, canceled, or rejected. If the Take Profit order is not yet filled or partially filled, you will not see it in your transaction history.
Why is my Take Profit order not filled when I see the Take Profit price being reached?
There are three possible reasons that could lead to a Take Profit order not being filled:
The Take Profit order is only partially filled, so it is not reflected in your transaction history yet
There is insufficient liquidity in the market (detailed in What happens when there is insufficient liquidity in the market?)
Your Take Profit order was being updated
Update Take Profit order
When you change your Take Profit order, your original order will be canceled and a new order will be created with the updated settings.
Change in position size
When you increase or decrease the position size of a trade with Take Profit set up, your Take Profit order will be canceled and only recreated after the order to increase or decrease the position size has been executed.