Users can set take-profit/stop-loss actions when holding positions. By entering the take-profit or stop-loss price and quantity, the system will automatically close the position when the market price reaches the set take-profit/stop-loss point, helping users secure profits or reduce losses.
Q: What is Take-Profit/Stop-Loss?
A: Take-profit is a target price set by the user. When the market price reaches this target, the system automatically closes the position, turning unrealized gains into realized profits.
Stop-loss is used when the market price moves unfavorably against the user’s position. The system automatically closes the position at a preset price to prevent further losses.
On BitTap, users can preset take-profit/stop-loss prices. When the market price reaches the preset point, the system will place an order at the best available price to execute the corresponding close position action.
Q: When Should Take-Profit/Stop-Loss Be Used?
A: Take-profit/stop-loss is very useful when users cannot monitor the market closely. It allows trades to be executed automatically based on market price changes while the user is offline, helping to avoid missed profit opportunities or limiting losses. Users can set take-profit/stop-loss as long as they have open positions, according to their trading strategy.
Q: Can Take-Profit/Stop-Loss Be Used Only for Closing Positions?
A: Yes, take-profit and stop-loss can only be used for closing positions. If users wish to open new positions, they can use other tools like trigger orders.
Q: Is Take-Profit/Stop-Loss Tied to a Position?
A: Yes, take-profit and stop-loss are based on current holdings. When there is no open position, these functions cannot be used. Users can set take-profit/stop-loss based on the quantity available for closing in the current position.
Example: If a user holds a position of 500 units, they can set up to 500 units for take-profit and stop-loss orders. If the user partially closes the position, the remaining quantity for take-profit/stop-loss will also adjust accordingly.
Q: How to Cancel Take-Profit/Stop-Loss Orders?
A: Users can view and cancel take-profit/stop-loss orders in the current orders list. When a position is manually closed or fully liquidated, the associated take-profit/stop-loss orders will also be automatically canceled.
Q: Can Take-Profit/Stop-Loss Orders Fail?
A: Yes, take-profit/stop-loss orders can fail. Due to high market volatility, actual transaction prices may differ from preset take-profit or stop-loss prices, and the order may not be fully or partially executed as planned.
Notes:
- Auto-close, protocol-based closure, and liquidation can impact the current take-profit/stop-loss quantity.
- Changing the position margin may alter the expected liquidation price, which can cause take-profit/stop-loss orders to be invalidated.
- A maximum of 20 take-profit/stop-loss orders can be set.
- Traders can set take-profit/stop-loss for specific positions, but not for the entire account.
Risk Warning:
Please note that market volatility may cause take-profit/stop-loss orders to not execute timely or fully. To reduce risk, ensure you fully understand these functions and apply them according to your trading strategy. BitTap is not responsible for any asset losses due to market fluctuations.