What Is TP/SL and How to Use It (Take Profit / Stop Loss)
Overview
TP/SL (Take Profit / Stop Loss) is a conditional order that allows you to automatically close a trade when the market reaches a specified price.
It helps manage risks and lock in potential profits without the need to constantly monitor the market.
- Take Profit (TP) — locks in profit when the target price is reached.
- Stop Loss (SL) — limits potential losses when the price moves against your position.
How TP/SL Works
When creating a TP/SL order, you specify:
- Trigger Price — the price level at which the order is activated.
- Execution Type:
- Market — after activation, the system creates a market order.
- Limit — after activation, the system creates a limit order at the specified price.
- Amount — the amount of cryptocurrency to buy or sell.
When the market price reaches the Trigger Price, the system automatically places the corresponding order.
Take Profit (Locking in Profit)
Take Profit is used when you want to automatically close a position after the price increases.
Example
You bought BTC:
- Purchase price: 100,000 USDT
- Current price: 105,000 USDT
- Target selling price: 110,000 USDT
You create a TP/SL order:
- Trigger Price: 110,000 USDT
- Action: Sell
- Execution Type: Market
When BTC reaches 110,000 USDT, the system automatically creates a sell order.
Stop Loss (Limiting Losses)
Stop Loss is used to limit potential losses when the price decreases.
Example
You bought BTC:
- Purchase price: 100,000 USDT
- Maximum acceptable loss: 5%
You create a TP/SL order:
- Trigger Price: 95,000 USDT
- Action: Sell
- Execution Type: Market
If BTC price falls to 95,000 USDT, the system automatically creates a sell order.
How to Create a TP/SL Order
- Open the Trading section
- Select a trading pair
- In the order creation section, select TP/SL
- Choose the trade direction:
- Buy
- Sell
- Select the execution type:
- Market
- Limit
- Enter the order parameters:
- Trigger Price
- Price (for Limit orders)
- Amount
- Check the order details
- Click Buy or Sell
TP/SL Market vs TP/SL Limit
| Type | How It Works | When to Use |
|---|---|---|
| TP/SL Market | A market order is created after the Trigger Price is reached | When fast execution is more important |
| TP/SL Limit | A limit order is created after the Trigger Price is reached | When a specific execution price is important |
Important Considerations
- TP/SL does not guarantee profit.
- During high market volatility, the execution price may differ from the expected price.
- A Limit TP/SL order may not be executed if the price changes quickly.
- Before creating an order, check:
- trading pair
- trade direction
- Trigger Price
- amount
Frequently Asked Questions
Can I modify a TP/SL order after creation?
No. To change the parameters, you need to cancel the existing order and create a new one.
What happens after TP/SL is triggered?
The system automatically creates a regular Market or Limit order depending on the selected execution type.
Can I cancel a TP/SL order?
Yes. As long as the order has not been triggered, it can be cancelled from the Open Orders section.