Take Profit/Stop Loss
The TP/SL feature enables traders to automate their strategies by setting predefined prices for taking profits (TP) or limiting losses (SL).
What is TP/SL?
Take Profit (TP): A Take Profit order automatically closes your position when the asset reaches a predetermined price, thereby locking in your profits. This ensures that your gains are secured without requiring active management of your trade.
Stop Loss (SL): A Stop Loss order helps manage risk by automatically closing your position if the asset's price drops to a certain level. This mechanism limits potential losses, protecting your capital from adverse market movements.
Setting Up TP/SL Orders
After opening a position, you can easily set your TP/SL prices by following these steps:
Navigate to the 'Active Positions' section.
Click on either the “TP” or “SL” button next to your desired position.
Choose one of the following methods to set your prices:
Inputting Trigger Price: Manually enter the price at which you want to take profit or cut losses.
Entering Estimated ROI: Alternatively, input your desired ROI (Return on Investment) for the trade. The system will automatically calculate and fill in the corresponding TP or SL trigger price.
Once you’ve set your TP or SL price, confirm the order through a gasless signature. This ensures that your order is placed without incurring any additional transaction fees.
Execution of TP/SL Orders
Once the asset's price reaches the specified Take Profit (TP) or Stop Loss (SL) acceptable price, the corresponding order is automatically executed on-chain. This ensures that your position is closed at the best available market price, adhering to your predefined strategy. An execution fee is applied to cover the gas fees associated with the on-chain transaction. This fee is charged only once per executed order.
Managing Active Orders
You can track and manage your active TP/SL orders from the 'Open Positions' section of the trading interface. If a TP or SL has been set for a specific position, the corresponding buttons will be lit up, making it easy to quickly identify which orders are active. Additionally, you have the flexibility to modify or cancel TP/SL orders at any time before they are triggered, allowing you to adapt to changing market conditions as needed.
The TP/SL you set is tied to the trigger price you specify. Note that due to ongoing borrow fees, your estimated ROI for a set TP or SL may gradually decrease over time.
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