Take-Profit & Stop-Loss
Managing risk with exit orders.
Overview
Take-Profit (TP) and Stop-Loss (SL) orders help you manage risk by automatically closing positions at specified price levels.
How They Work
Take-Profit: Closes position when price reaches your profit target Stop-Loss: Closes position when price reaches your loss limit
Both execute as market orders when triggered.
Setting Up
Take-Profit
Set a price above your entry (for longs) or below (for shorts) to lock in profits.
Example (Long Position):
Entry: $50,000
Take-Profit: $55,000
When price reaches $55,000, position closes automatically
Stop-Loss
Set a price below your entry (for longs) or above (for shorts) to limit losses.
Example (Long Position):
Entry: $50,000
Stop-Loss: $47,500
When price reaches $47,500, position closes automatically
Trigger Behavior
Price reaches your trigger level
Market order submitted automatically
Position closed at best available price
Note: Execution price may differ from trigger price due to market conditions (slippage).
Best Practices
Risk Management:
Always set a stop-loss on new positions
Use reasonable risk:reward ratios (1:2 or better)
Don't move stop-loss further from entry
Trigger Placement:
Set stop-loss beyond normal price volatility
Consider support/resistance levels
Account for potential slippage
Vault Trading
When trading from vaults:
Same TP/SL mechanics apply
Higher slippage tolerance for reliability
Copy trading replicates trigger orders
Related Pages
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