How do take-profit and stop-loss orders work?
Take-profit and stop-loss (TP/SL) orders are some of the most important risk management tools in futures trading. This guide explains how they work, how to set them up, and what to keep in mind when using them.
ℹ️ WEEX supports both preset TP/SL orders when opening a position and adding or adjusting TP/SL orders after entering a trade. You can manage your risk before or after opening a position at any time.
How are TP/SL orders triggered?
A take-profit or stop-loss order is triggered when the market price reaches your preset trigger price.
When setting TP/SL orders, you can choose either the last price or the mark price as the trigger condition. Once triggered, a market order will be placed automatically to close your position.
⚠️ Note: Triggered does not mean instantly filled. After the order is triggered, execution still depends on market liquidity at that time. During periods of high volatility, partial fills or execution delays may occur. |
How do you set take-profit and stop-loss orders?
Key concepts:
Take-profit (TP): An order that automatically closes your position when the market reaches your target profit level, helping lock in unrealized gains.
Stop-loss (SL): An order that automatically closes your position when the market moves against you beyond your acceptable loss level, helping limit downside risk. Essential for high-leverage trading.
You can choose either of the following methods based on your trading style.
Method 1: Set TP/SL when opening a position
Best for traders who want to plan risk management before entering a trade and avoid sudden market reversals immediately after order execution.
- Select a limit order, market order, or trigger order in the order panel, then enter your order price and amount.
- Check the "Long TP/SL" or "Short TP/SL" box below the panel.
- Choose your trigger type (last/mark price) and set your target using price, ROI, PnL, or percentage.
- Select "Open Long" or "Open Short" to submit your order. Your TP/SL will automatically activate once your position is filled.
Method 2: Add or adjust TP/SL after opening a position
Best for traders who enter positions quickly and want to adjust their strategy later based on market conditions.
- Find the position you want to manage in the "Positions" panel.
- Select "TP/SL" next to the position.
- Select the trigger price type, enter your trigger price, and choose the closing amount.
- Confirm and submit your changes.
🚨 When trading with high leverage, always set a stop-loss. Without one, a sudden market swing could trigger a forced liquidation, resulting in the loss of your entire margin.
FAQ
Question | Answer |
Can TP/SL be used to open a position? | No. TP/SL orders are designed only for closing positions. To open a position when the price reaches a certain level, use trigger orders. |
How many TP/SL orders can I set per position? | You can set up to 20 TP/SL orders per position. |
Can TP/SL orders fail to execute? | Yes. During periods of high market volatility, orders may be partially filled or fail to execute. |
When are TP/SL orders automatically canceled? | TP/SL orders are automatically canceled if you manually close your position, get liquidated, or trigger auto-deleveraging. The cancellation reason will appear as “Position Change Cancellation” in your order history. |
Can I modify existing TP/SL orders? | Yes. Go to "Open Orders" → "Trigger", locate your order, and select the edit icon to adjust the price at any time. |
⚠️ Risk warning: During periods of high market volatility, TP/SL orders may fail to execute or may only be partially filled. Make sure you fully understand how the feature works before using it. WEEX is not responsible for any losses resulting from market price fluctuations.
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