What is stop loss and take profit?
Take profit and stop loss is a type of strategic order, which means setting the order and trigger conditions in advance. When the latest futures price, mark price or index price reaches the pre-set trigger price, the initially set order will enter the market at the order price, so as to achieve the effects of taking profit,
Take profit and stop loss is a very important concept in futures trading. When the direction of your contract is opposite to the market trend, it can stop the loss in a timely manner and preserve the funds. When the direction of your futures is in line with the market trend, taking profit in a timely manner can lock in the profits.
BitUnix futures can take profit and stop loss in two places: the futures trading page and the specific positioning page. Users can choose according to their own situation.
What is the trigger price?
The trigger price refers to the price at which a user's buy or sell order is activated and executed on the exchange server. In other words, when the market price reaches the trigger price set by the user, the order will be sent to the exchange server for execution.
App side how to set take profit/stop loss?
1.Set take profit and stop loss on the Futures trading page
Open bitunixAPP, enter the [futures] trading page: After setting the relevant parameters, click on the bottom [Take Profit and Stop Loss], you can directly set the trigger price of take profit and stop loss on the order page;
Here we take Market Order [ETHUSDT] 20 times leverage short as an example, set the stop-loss trigger price to 1800, the take-profit trigger price to 1700, and then click sell to open short, here we have completed a Market Order 20 times [ETHUSDT] short.
2.Set take profit and stop loss on the specific positioning page
Click [Positioning] - Select the specific positioning to be flat Click [Take Profit and Stop Loss] - Enter [Take Profit Trigger Price], [Stop Loss Trigger Price]、 [Quantity] - Click [Confirm] .
There are two commonly used stop-loss and take-profit methods:
- Positioning Take Profit and Stop Loss
- Take Profit and Stop Loss in Batches
Note:
- When the futures price does not reach the trigger price, the order will not enter the market. When the futures price reaches the trigger price, the order will enter the market at the order price.
- Positioning and margin will not be frozen until successfully triggered. Stop-loss orders may not be successfully triggered and may fail due to price restrictions, positioning restrictions, insufficient margin, non-trading contracts, system issues, etc. Limit orders that are successfully triggered may not necessarily be executed, and unexecuted limit orders will be displayed in the current order.
- If the market experiences severe fluctuations, there may be situations where orders cannot be executed.
- If you need to quickly flatten all positioning, you can choose specific positioning, click on [Market Price Flattening] .
Risk Warning:
Stop-loss and take-profit are the "safety net" of futures trading: take-profit helps traders exit rationally when profitable, avoiding "roller coasters"; stop-loss forces the brakes when losing, preventing small losses from turning into big ones. The combination of the two can effectively manage positioning risks, ensure that the execution of trading strategies is not affected by emotions, and is the core tool for long-term survival in the contract market.
Disclaimer
This material is provided for general information only. It is not intended to provide:
- Investment advice or investment recommendations.
- an offer or solicitation to buy, sell, or hold digital assets;
- Financial, accounting, legal, or tax advice.
- Digital assets, including stablecoins and NFTs, carry a high level of risk and can fluctuate significantly in value. Consider carefully whether trading or holding digital assets is suitable for your financial situation. Consult your legal, tax, or investment professional for guidance tailored to your circumstances. You are responsible for understanding and complying with all applicable laws and regulations in your location.