Take Profit (TP) and Stop Loss (SL) are two risk management strategies for open positions in the cryptocurrency market. A stop Loss order helps you control the amount of crypto you are willing to lose on a trade. Meanwhile, a take profit order can be used to lock in profit when market prices move sharply.
When trading USDC perpetual contracts, traders can set a TP/SL when placing a limit order, market order, or conditional order.
Main Takeaway:
Risk management techniques, such as setting take-profit and stop-loss orders, help you protect your trading account from taking big losses.
With TruBit Pro, our users can place TP/SL orders simultaneously to help them better plan their risk-reward ratio.
Some of the most successful traders believe that stop loss orders can be considered a free insurance policy.
Cryptocurrencies offer unique opportunities for traders to profit due to their high volatility. But without proper risk management, any winning trade can quickly turn into a losing trade. This is why you need to have a solid trading plan to avoid making decisions based on emotions.
How does it work?
Take Profit and Stop Loss Orders
Take-Profit and Stop-Loss orders can be considered part of your exit strategy for every trade you make. These orders are executed once the prices reach a level previously set by the user, closing their long or short position with a profit or loss.
Your trading preferences play an important role in determining where your take profit and stop loss orders are placed. Whether you prefer to trade Japanese candlestick patterns, chart patterns, trend lines, or technical indicators, with TP/SL orders, you won't have to worry about exiting a trade or questioning your decisions.
For example, a trader entering a long position based on an ascending triangle can immediately determine where to place take profit and stop-loss orders. The height of the Y axis of the triangle can generate a potential target, while the hypotenuse of the pattern suggests an invalidation point.N
The take-profit and stop-loss orders help protect you from the unknown and better understand what to expect from each position you open.
Benefits of Take-Profit and Stop-Loss Orders
TP/SL function. It allows traders to set the take-profit and stop-loss orders by entering the percentage gain or loss expected.
It also helps set up take-profit and stop-loss orders based on the last price or mark price and displays the estimated profit and loss for take-profit and stop-loss orders.
Stop-loss orders help you cut losses when the market moves against your positions. Consequently, it acts as a free insurance policy for your trading account.
You can also have the flexibility to engage in other activities while having an open position because the take-profit and stop-loss orders will be automatically executed when the time is right.
App Version
How to Place Take-Profit and Stop-Loss Orders
Take-Profit
Once you have opened a position, press the TP/SL option.
Select the Position TP/SL option.
Once inside this option, set the Limit within the Take Profit heading.
Select the "Confirm" botton.
When the last price reaches the set amount, you will trigger the Take Profit Limit order to close this position. The estimated PNL will be "N" amount of USDT.
Stop Loss
Once you have opened a position, press the TP/SL option.
Select the Position TP/SL option.
Once inside this option, set the Limit within the Stop Loss heading.
Select the "Confirm" button.
When the last price reaches the set amount, you will trigger the Stop Market order to close this position. The estimated PNL will be "N" amount of USDT.
Web Version
How to Place Take-Profit and Stop-Loss Orders
Take-Profit
Once you have opened a position, press the TP/SL option.
Once inside this option, set the Limit within the Take Profit heading.
Select the "Confirm" botton.
When the last price reaches the set amount, you will trigger the Take Profit Limit order to close this position. The estimated PNL will be "N" amount of USDT.
Stop Loss
Once you have opened a position, press the TP/SL option.
Once inside this option, set the Limit within the Stop Loss heading.
Select the "Confirm" button.
When the last price reaches the set amount, you will trigger the Stop Market order to close this position. The estimated PNL will be N amount of USDT.
If you have questions regarding this information, please contact the TruBit Team via our chat channel or email us Here and we'll be in touch!