📂Order Types

Take Profit / Stop Loss Orders

Take Profit (TP) orders are used to automatically close a position and secure profits once the market price reaches a predefined level:

• For Long positions, the TP should be set above the entry price.

• For Short positions, the TP should be set below the entry price.

Stop Loss (SL) orders are used to automatically close a position and limit losses once the market price hits a predetermined level:

• For Long positions, the SL should be set below the entry price and above the liquidation price.

  • Below the entry price: to cut losses early.

  • Above the liquidation price: to reduce the risk of forced liquidation.

• For Short positions, the SL should be set above the entry price and below the liquidation price.

  • Above the entry price: to cut losses early.

  • Below the liquidation price: to reduce the risk of forced liquidation.

---

How to set TP/SL effectively?

• Long positions

  • TP: place it at a level higher than the entry price to secure profit.

  • SL: place it lower than the entry price to limit losses, but make sure it is still above the liquidation price to avoid being liquidated.

• Short positions

  • TP: place it at a level lower than the entry price to secure profit.

  • SL: place it higher than the entry price to limit losses, but ensure it is still lower than the liquidation price to avoid liquidation.