When placing a Limit Order, you will be able to set the
[Take Profit] and [Stop Loss] orders simultaneously.
Click [Limit] and enter the order price and size. Then, check the box next to [TP/SL] to set the [Take Profit] and [Stop Loss] prices based on the [Last Price] or [Mark Price]. Next, click [Buy/Long] or [Sell/Short] to place the order.
*You can only select either [TP/SL] or have enabled [Reduce-only] in a single order.
Please note that if you are using the
[Hedge Mode], the [TP/SL] function is only available for [Open] orders.
You can check your orders under the [Open Orders] tab and Click [View] under [TP/SL] to view order details.
When an order is triggered, you can add or modify the TP/SL under the [Positions] tab. This will be applied to the entire position.
After closing the position, the TP/SL will be automatically canceled.
Under TP/SL, click [Advanced] to have more precise control over the execution price.
Advanced TP/SL allows users to set the TP/SL [Trigger Price] by entering the percentage [Gain] or [Loss] expected. It also helps set up TP/SL prices based on the [Last Price] or [Mark Price] and displays the estimated profit and loss for Take-Profit and Stop-Loss orders.
2. Which types of orders support the TP/SL function?
Excluding Trailing Stop Order, only Limit, Market, Stop Limit, Stop Market, and Post Only Orders are supported under the [TP/SL] function.
These orders are executed through the strategy order. Currently, Binance Futures supports two types of strategy: One-Triggers-a-One-Cancels-the-Other (OTOCO) and One-Triggers-the-Other (OTO). They allow you to place two orders - a primary order and a secondary order - at the same time.
In an OTOCO order, if the primary order is filled or partially filled, the secondary order will take effect (either Take Profit or Stop Loss). If TP is filled, SL will be canceled, and vice versa. This is also called an OTO order.
Note: If the trigger price of the secondary order is too close to the primary order, it is highly likely that the secondary order will be canceled when the primary order is executed. We recommend users set an ample price distance between the primary and secondary orders.
3. If I increase or reduce my position, will it trigger the TP/SL to close all my positions?
Yes, all positions will be closed after increasing or reducing the position. You can view the orders under [Open Orders] - [Close Position].
4. Can I set multiple TP/SL for my orders?
Yes, users can set multiple Take Profit and Stop Loss orders for each of their Long or Short positions. Note that the Take Profit and Stop Loss orders will be executed in the order that they were placed until the cumulatize size of these orders meets the same size of the primary Long or Short position.
5. Can I view the unfulfilled TP/SL under [Open Orders]?
You can click [View] under [TP/SL] on the primary order to view unfulfilled TP/SL.
6. Are rules for Stop Limit/Stop Market/Trailing Stop Order the same?
There is no change to the Stop Limit/Stop Market/Trailing Stop Order shown below. You can choose whether to enable ‘Reduce-Only’, set Trigger price and Execution price, etc. Please note that the TP/SL set up here will not be shown in your positions, and it doesn’t support the [Close Position] function.
Certainly! As someone deeply immersed in trading and financial markets, I've spent years navigating various trading platforms and strategies. I'm well-versed in the nuances of order types, risk management, and maximizing profit potential through tools like Take Profit (TP) and Stop Loss (SL).
Let's break down the concepts from the provided article:
Placing a Limit Order with TP/SL:
Utilize a Limit Order to set a specific price for execution.
Enable TP/SL simultaneously: specify Take Profit and Stop Loss orders alongside the Limit Order.
Options to set TP/SL based on Last Price or Mark Price.
Hedge Mode limitations on TP/SL availability.
Ability to modify TP/SL after triggering under the Positions tab.
Order Types Supporting TP/SL:
TP/SL function supported in Limit, Market, Stop Limit, Stop Market, and Post Only Orders.
Strategies like One-Triggers-a-One-Cancels-the-Other (OTOCO) and One-Triggers-the-Other (OTO) for simultaneous primary and secondary orders.
Recommendations on setting trigger price distances between primary and secondary orders.
Position Increase/Reduction Impact on TP/SL:
Increasing or reducing a position triggers closure of all positions.
Access to these orders under Open Orders > Close Position.
Multiple TP/SL for Orders:
Ability to set multiple TP/SL orders for Long or Short positions.
Execution of TP/SL in the order placed until they match the size of the primary position.
Viewing Unfulfilled TP/SL:
Access to unfulfilled TP/SL by clicking View under TP/SL on the primary order.
Rules for Stop Limit/Stop Market/Trailing Stop Order:
No alterations to these orders, with options to enable 'Reduce-Only', set Trigger and Execution prices.
TP/SL setup here doesn't reflect in positions and lacks the Close Position function.
Understanding these concepts is crucial for effective risk management and optimizing trading strategies, ensuring a balance between profit-taking and minimizing losses. These functionalities empower traders to execute precise, automated actions based on market movements, enhancing efficiency and control in volatile markets.
Remember that the key difference between a limit order and a stop order is that the limit order will only be filled at the specified limit price or better; whereas, once a stop order triggers at the specified price, it will be filled at the prevailing price in the market—which means it could be executed at a price ...
TP/SL orders will execute as market orders when triggered. Full position TP/SL are OCO orders. It means if one of the orders is triggered, the other order will be canceled automatically. A position can only have one full position TP/SL on one side (long or short)
Entire Position: Click on the remove icon next to your trigger settings, then click on Confirm.
Partial Position: click on Cancel on the respective TP/SL order you want to remove. You can also click on Cancel All in the upper right corner to cancel all TP/SL orders for partial position.
The stop order sets a price to execute an order and the limit order specifies how much should be bought or sold at that set price. Stop orders alone turn into a market order trading immediately, whereas a stop-limit order turns into a limit order that will only be executed at a set price or even better.
What is Stop Loss (SL) and Take Profit (TP) and how to use it? 07 November 2023. Both Stop Loss and Take Profit orders are basically you as a trader telling your broker when to close your trades. A stop-loss is designed to let your broker know how much you are willing to risk with your trade.
A stop-loss (SL) level is the predetermined price of an asset, set below the current price, at which the position gets closed in order to limit an investor's loss on this position. Conversely, a take-profit (TP) level is a preset price at which traders close a profitable position.
Take-profit (T/P) orders are limit orders that are closed when a specified profit level is reached. Limit prices for T/P orders are placed using either fundamental or technical analysis. Take-profit orders are beneficial for short-term traders interested in profiting from a quick bump in the security costs.
Enter the amount (in USD) you would like to invest. Click on the toggle button to set up SL, then enter the investment equity amount for the SL to trigger. Click on the toggle button to set up TP, and enter the investment equity amount for TP.
- You can adjust stop-loss and take-profit levels by clicking and dragging the stop-loss and take-profit lines directly on the chart. - Alternatively, you can modify the stop-loss and take-profit levels from the trading panel by clicking on the "Edit" button next to the respective level and entering a new price.
A buy-stop order is a type of stop-loss order that protects short positions; it is set above the current market price and is triggered if the price rises above that level. Stop-limit orders are a type of stop-loss, but at the stop price, the order becomes a limit order—only executing at the limit price or better.
If the price of AAPL moves above the $160 stop price, then the order is activated and turns into a limit order. As long as the order can be filled under $165, which is the limit price, the trade will be filled. If the stock gaps above $165, then the order will not be filled.
Like limit orders, stop orders can be set up with a custom price in mind. However, unlike limit orders, they are not executed once the specific price is reached. On the contrary, stop orders are activated once the desired price has been met or exceeded.
Example: An investor wants to purchase shares of ABC stock for no more than $10. The investor could submit a limit order for this amount and this order will only execute if the price of ABC stock is $10 or lower.
The Bottom Line. Limit orders and stop orders allow you greater control over your stock transactions. Market participants can see when you have entered a limit order, which tells your broker to buy or sell an asset at an indicated limit price or better.
A trader buys 100 shares of XYZ Company for $100 and sets a stop-loss order at $90. The stock declines over the next few weeks and falls below $90. The trader's stop-loss order gets triggered and the position is sold at $89.95 for a minor loss.
The investor has put in a stop-limit order to buy with the stop price at $160 and the limit price at $165. If the price of AAPL moves above the $160 stop price, then the order is activated and turns into a limit order. As long as the order can be filled under $165, which is the limit price, the trade will be filled.
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