A SL/TP Order

1. Rules:

A SL/TP Order is an order that does not enter the order book until the market reaches a certain Trigger Price. Traders can use this type of order as a risk-management tool to limit losses or take profits on cryptocurrency investments, or as an automatic tool to enter the market at a desired entry point without manually waiting for the market to place the order.

 

2. Terminology

Trigger Price: Trigger price is the price that is chosen by the trader. When the market reaches the trigger price, the exchange will automatically place the Buy/Sell order for the trader.

Limit Price: Limit price is the price of the limit order that will be placed when the market reaches the Trigger Price.

Quantity: Quantity is the number of contracts to Buy/Sell when the market reaches the Trigger Price.

3. Restrictions on Limit Price

When setting up SL/TP Buy order, the Limit Price cannot be higher than 110%*Trigger Price

When setting up SL/TP Sell order, the Limit Price cannot be lower than 90%*Trigger Price

4. Cancel Open Orders

You can cancel all open SL/TP orders.

5. Examples

TP Sell Order

You  bought 10 BTC at 8,000 USDT/BTC price, and you think bitcoin has a resistance level of $9,000. To maximize the profit on your bitcoin investment, you want to sell the 10 BTC you bought when the price of BTC reaches 9,000 USDT/BTC.

How to do it? Just place a TP Sell Order with the following user inputs:

Buy/Sell: Sell

Trigger Price: 9,000 USDT/BTC

Limit Price: 9,000 USDT/BTC

Quantity: 10 BTC

 

SL Sell order

You  bought 10 BTC at 8,000 USDT/BTC price, and you can only stomach 5,000 USDT loss for this investment. So to limit loss, you want to sell the 10 BTC you bought when the price of BTC falls to 7,500 USDT/BTC.

How to do it? Just place a SL Sell Order with the following user inputs:

Buy/Sell: Sell

Trigger Price: 7,500 USDT/BTC

Limit Price: 7,500 USDT/BTC

Quantity: 10 BTC

 

Buy at a desired entry point Scenario 1

You want to buy BTC, yet you think the current BTC price (8,000 USDT/BTC) is too high. You want to place an limit buy order to buy 10 BTC at 7,400 USDT/BTC price, when the price falls to 7,500 USDT/BTC.

How to do it? Just place a SL/TP Buy Order with the following user inputs:

Buy/Sell: Buy

Trigger Price: 7,500 USDT/BTC

Limit Price: 7,400 USDT/BTC

Quantity: 10 BTC

Buy at a desired entry point Scenario 2

You want to buy BTC, yet you think the current BTC price (8,000 USDT/BTC) is too high. You want to wait a bit to see if the price will fall. However, you can only afford to buy 10 BTC at 8,500 USDT/BTC if the price keeps rising.

How to do it? Just place a SL/TP Buy Order with the following user inputs:

Buy/Sell: Buy

Trigger Price: 8,500 USDT/BTC

Limit Price: 8,500 USDT/BTC

Quantity: 10 BTC