What is Take Profit/Stop Loss?
Take Profit refers to a common contract trading operation in which users believe that when the contract price rises/falls to a certain level, the position can be closed in a timely manner to convert their unrealized profit into a realized profit.
Stop Loss refers to a common contract trading operation in which users believe that the loss generated when the contract price rises/falls to a certain level, the position needs to be closed in time to avoid further losses.
TruBit Pro platform offers TP/SL instructions: Users are allowed to set the TP/SL price in advance. When the latest transaction price reaches the specified TP/SL price, the system will close the position with the best price for the quantity that users have set up.
How to set Take Profit/Stop Loss?
Enter your Contract Trading position page, and click the 'TP/SL' button below.
Choose between 'Partial Position' and 'Entire Position'.
Enter your TP/SL price or click 'Advanced Mode' and select your preferred metric.
Determine the percentage and the corresponding TP/SL price will be generated automatically.
Click the 'Confirm' button and there will be 2 open orders on your panel
When the latest transaction price in the market reaches your set TP/SL prices, the system will automatically close the position.
FAQs
When to use Take Profit/Stop Loss?
When users have open positions but cannot monitor the market for extended periods, it's suggested using take-profit/stop-loss orders. However, as long as users have open positions, they can use TP/SL orders at any time according to their actual needs. Sometimes TP/SL orders may fail to execute in extreme market conditions (though this is rare in actual trading). The more common situation is that during periods of high volatility and price fluctuations, the real transaction price may differ from the price at which the TP/SL order was triggered. And the TP/SL orders may also fail to be executed or only be partially executed.
How to cancel Take Profit/Stop Loss orders？
The TP/SL orders orders are displayed individually, and users can manually cancel them. The closure of a position will affect the number of contracts in the open TP/SL orders. When all positions are closed manually by the user, the TP/SL orders will also be automatically cancelled.
Does Take Profit/Stop Loss fail?
When the market fluctuates violently, there is a possibility that stop-loss and take-profit orders cannot be executed or cannot be fully executed. In the case of severe market fluctuations, the market price quickly breaks through the predetermined price, and it may cause the orders can not be filled or not fully filled, or the actual transaction price when triggering Take Profit/Stop Loss differ from the order price. It's recommend that users to consider cautiously based on own risk assessment before deciding to wait for fulfillment or cancel the order.
Risk Warning
When the market is highly volatile, TP/SL orders may fail to be executed or fully executed, resulting in a price exceeding the stop-loss level and causing a forced liquidation. Therefore, please make sure to thoroughly understand the functionality before setting Take Profit/Stop Loss.
When the latest transaction price in the market reaches the set TP/SL prices, the system will execute the order at the best available price for current quantity of the position.
The trigger price of forced liquidation may change due to user actions (such as reducing margin) or market fluctuations. Therefore, it's suggested not to set the stop-loss price too close to the liquidation price to avoid the situation where forced liquidation occurs before the stop-loss is triggered.
TruBit Pro is not responsible for any asset losses caused by market price fluctuations.
If you have questions regarding this information, please contact the TruBit Team via our chat channel or email us Here and we'll be in touch!