Take Profit and Stop Loss are commonly used risk management tools in futures trading that help users automatically lock in profits or limit losses.
1. What Is Take Profit?
A Take Profit order automatically closes a position when the market reaches a predefined price level, helping users lock in profits.
For example:
When the market price rises to the Take Profit price, the system will automatically close the position to lock in profits.
2. What Is Stop Loss?
A Stop Loss order automatically closes a position when the market reaches a predefined price level, helping users limit losses.
For example:
When the market price falls to the Stop Loss price, the system will automatically close the position to help prevent further losses.
3. Types of TP/SL Orders
Hotcoin Futures supports both Market TP/SL and Limit TP/SL orders.
I. Market TP/SL
Users only need to set a trigger price.
Once the market reaches the trigger price, the system will automatically close the position at the current market price.
II. Limit TP/SL
Users need to set both a trigger price and an order price.
Once the market reaches the trigger price, the system will place a limit order at the specified order price.
Notes
We recommend setting your TP/SL levels with your risk tolerance in mind and adjusting them as market conditions change.