# 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

1. Price reaches your trigger level
2. Market order submitted automatically
3. 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

* [Placing Orders](/trading/placing-orders.md)
* [Position Management](/trading/position-management.md)
* [Risk Controls](/trading/risk-controls.md)


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