Futures trading offers significant profit potential, but it also comes with increased risk. One of the most essential tools for managing that risk—and securing gains—is the take-profit and stop-loss mechanism. These are conditional orders that help traders automate their exit strategy, ensuring discipline in volatile markets.
This guide will walk you through how to set take-profit and stop-loss orders on a leading digital asset platform, using clear steps and practical insights. Whether you're trading perpetual or delivery futures contracts, understanding these tools is crucial for long-term success.
What Are Take-Profit and Stop-Loss Orders?
A stop-loss order automatically closes your position when the market moves against you, limiting potential losses. A take-profit order locks in profits by closing your position when the price reaches a favorable level.
Together, they form a risk management strategy known as conditional or trigger-based orders. When the latest market price hits your predefined trigger price, the system submits your preset order into the market at the specified execution price.
These tools are especially vital in futures trading, where leverage can amplify both gains and losses. Without proper risk controls, even a correct market prediction can result in unexpected losses due to sudden volatility.
👉 Discover how professional traders use automated strategies to protect capital and maximize returns.
Why Use Take-Profit and Stop-Loss?
- Emotion-free trading: Automate decisions to avoid panic selling or greed-driven holds.
- Risk control: Limit downside exposure when the market turns.
- Profit protection: Secure gains before a reversal erases them.
- 24/7 market coverage: Crypto markets never sleep—your orders work even when you’re offline.
Ignoring these tools is one of the most common mistakes among beginners. Learning to use them effectively increases your longevity in the market.
Where Can You Set Take-Profit and Stop-Loss?
On most advanced trading platforms, including those supporting perpetual and delivery futures, you can set these orders in two primary locations:
- During or after opening a position (on the trading interface)
- From the active positions panel
Let’s explore both methods in detail.
1. Setting Take-Profit and Stop-Loss on the Trading Page
Option A: Set During Position Opening
You can configure take-profit and stop-loss right when placing your initial trade.
For a long (buy) position:
- Enter your desired quantity and leverage.
- Click "Buy Long" or "Sell Short".
- In the order confirmation popup, tap "Take-Profit/Stop-Loss".
Input:
- Take-profit trigger price
- Take-profit order price
- Stop-loss trigger price
- Stop-loss order price
- Confirm with "OK".
This ensures your risk and reward parameters are locked in from the start.
Option B: Set After Opening a Position
If you didn’t set these orders initially, you can still add them later.
Example (Long Position):
- Go to the open position section.
- Click "Close" → Select "Take-Profit/Stop-Loss" → Choose "Dual Take-Profit & Stop-Loss".
Enter:
- Take-profit trigger and order prices
- Stop-loss trigger and order prices
- Quantity to close
- Click "Sell to Close Long".
🔍 Trigger Price refers to the market price that activates your order.
Order Price is the price at which the system will attempt to execute the trade once triggered.
Using limit prices gives you more control over execution, but carries the risk of non-fill during fast-moving markets.
2. Setting from the Active Positions Panel
This method offers a direct way to manage existing trades.
Steps:
- Navigate to Positions.
- Select the specific contract you want to manage.
- Click "Take-Profit/Stop-Loss".
Fill in:
- Take-profit trigger price
- Stop-loss trigger price
- Quantity (partial or full)
- Hit "Confirm".
This approach is ideal for adjusting strategies mid-trade based on evolving market conditions.
Key Notes on Execution and Risks
While take-profit and stop-loss orders are powerful, they’re not foolproof. Here are important considerations:
- Orders only activate when the trigger price is hit. Until then, no funds are frozen.
- Once triggered, the system places a limit order at your specified price.
- If your set price violates current exchange limits (e.g., beyond upper/lower bounds), the system will use the maximum allowable price.
Orders may fail due to:
- Insufficient margin
- Position size limits
- Market halts or maintenance
- System delays
- Unfilled limit orders appear under Open Orders.
- During extreme volatility, slippage or non-execution may occur—even after triggering.
💡 Pro Tip: For urgent exits, use Market Close All instead of relying solely on conditional orders.
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👉 See how top traders combine technical analysis with smart order setups for consistent results.
Frequently Asked Questions (FAQ)
Q1: Can I modify or cancel a take-profit/stop-loss order after setting it?
Yes. As long as the trigger price hasn’t been reached, you can edit or cancel the order from the active positions or open orders section.
Q2: What happens if my stop-loss triggers but the order doesn’t fill?
In fast-moving or illiquid markets, your limit order might not execute even after triggering. This could leave your position open despite attempting to exit. Consider using stop-market orders for faster execution when speed matters more than price precision.
Q3: Is there a fee for setting take-profit or stop-loss orders?
No. Setting conditional orders is free. Fees only apply if the order executes and results in a trade.
Q4: Can I set only take-profit or only stop-loss?
Yes. You don’t need to set both. You can configure just one depending on your strategy—for example, locking profits while letting the position run with a trailing stop elsewhere.
Q5: Do take-profit and stop-loss work during weekends or holidays?
Yes, as long as the contract is active and trading is enabled. Cryptocurrency markets operate 24/7, so your orders remain valid across all days unless manually removed or invalidated by system status.
Q6: What’s the difference between trigger price and order price?
The trigger price activates the order; it doesn't have to match the order price, which is where you want the actual trade to execute. For example, you might trigger a sell at $60,000 but place it at $59,900 to avoid immediate slippage.
Final Thoughts
Mastering take-profit and stop-loss settings is not optional—it's fundamental to surviving and thriving in futures trading. These tools help enforce discipline, reduce emotional interference, and protect your trading capital over time.
Whether you're new to leveraged trading or refining your strategy, integrating automated exits into your routine significantly improves consistency and peace of mind.
Remember: The goal isn’t just to make profits—it’s to keep them.