How to Set TP/SL Conditions

What is TP/SL?

TP/SL orders allow traders to preset a price for a transaction. When the market's last price (preset fill price/mark price/index price) reaches the preset trigger price, the system will automatically place an order based on the preset order type, price, and amount. With TP/SL orders, users can better manage risks in volatile markets to ensure safer trading.

Key Terms and Parameters

When using TP/SL orders, it is important to understand the following key terms and parameters:

1. Trigger Price: The market price at which the TP/SL order is activated.

2. Order Price: The price at which the system executes the order to buy or sell once the trigger price is hit.

3. Last Price: The most recent fill price in the market.

4. Mark Price: A calculated reference price used to prevent market manipulation. 5. Index Price: An average price derived from multiple exchanges, reflecting the overall market price level. Please note:

5. The actual execution price of orders in the order book may differ from the Last Price, Mark Price, or Index Price, especially during high volatility.

6. Assets in the futures account will not be locked as margin before the TP/SL orders are triggered. Available balances in the futures account will only be locked as margin after the TP/SL orders are triggered and placed according to the preset price and amount. To this end, users may not receive notifications of "insufficient balance" when setting TP/SL conditions and need to check their account balance in advance to avoid order failures due to insufficient balance.

Differences and Usage Scenarios of Last Price, Mark Price, and Index Price

Types of TP/SL Orders on Gate and Their Usage Scenarios

Below are brief explanations of several TP/SL order types supported by Gate, along with their recommended usage scenarios. For detailed guides, please refer to:

Why Set TP/SL Orders?

In futures trading, price fluctuations can be highly volatile, especially when using leverage, which amplifies both profits and risks. TP/SL orders allow you to automatically execute trades when preset conditions are met, helping secure profits or limit losses. For example, suppose you buy 1 BTC contract at 50,000 USDT using 10x leverage. If the price rises to 55,000 USDT, a TP order can automatically close the position and lock in 50,000 USDT profit. Similarly, if the price falls to 48,000 USDT, an SL order can automatically close the position to limit losses to 20,000 USDT. | Condition | Price (USDT) | Leverage| Without Stop-Loss | With Stop-Loss | | :--- | :--- | :--- | :--- | :--- | | Buy 1 BTC | 50,000 | 10x | - | - | | Market price rises to | 55,000 | 10x | Profit may shrink if the market pulls back | TP closes position, locks in 50,000 USDT profit | | Market price falls to | 48,000 | 10x | Losses may keep expanding if the market keeps falling | SL closes position, limits loss to 20,000 USDT |

As shown, TP/SL orders protect investments in volatile markets, lock in profits at target prices, and help traders avoid emotional decisions.

How to Set TP/SL When Opening a Position

Web Version

1. Select [Market] or [Limit] in the order placement section;
2. Select [TP/SL];
3. Select [Buy (Long)/Sell (Short)];
4. Set a suitable trigger price for TP/SL orders. The default SL price of limit/market TP/SL orders is the "Last Price". You can choose between the "Last Price", "Mark Price", or "Index Price" for the trigger price for TP/SL orders.
5. Enter your order amount and price, and click [Buy (Long)/Sell (Short)].

• Mark Price: Calculated by the platform based on a set of parameters to prevent manipulation.
• Last Price: The most recent fill price in the market.
• Index Price: The average price from multiple exchanges, reflecting the overall market price level.

App Version

1. Go to [Futures] - [Limit] or [Market];
2. Select [TP/SL];
3. Set a suitable trigger price for TP/SL orders.

Click [Advanced] for more settings. The default SL price of limit/market TP/SL orders is the "Last Price". You can choose between the "Last Price", "Mark Price", or "Index Price" for the trigger price for TP/SL orders.

4. Enter your order amount and price, and click [Buy (Long)/Sell (Short)].

   How to Set TP/SL in Position Tab?

   Web Version

5. Set TP/SL in the order section: Find [TP/SL] in the Position tab. Click the edit icon to set or edit TP/SL conditions.

Set TP/SL in Position Tab: Find [TP/SL] in [Open Orders], and click [Add].

2. Select a TP/SL type:

Order TP/SL: Set TP/SL conditions along with order placement. Once the market price hits the preset trigger price, the system will automatically place a buy or sell order based on the preset price and amount. This function combines the mechanisms of limit and market orders, allowing users to manage trades with flexibility.

Position TP/SL: When the selected mark price, last price, or index price reaches the trigger price, the entire position will be closed at the market price. After the position is closed, any previously set TP/SL instructions will be automatically canceled. Trigger TP/SL: It allows users to set specific conditions to determine when to take profit (lock in profits) or stop loss (limit losses). Users can also specify the order amount to reduce their position.

3. Check [TP] or [SL], select a trigger price type (mark price/last price/index price), and choose to take profit or stop loss by price or return %.

App Version

1. Entry 1: Tap [TP/SL] in [Positions].

Entry 2: Tap the "✏️" icon in [Orders].

2. Select a TP/SL type: Order TP/SL/Position TP/SL/Trigger TP/SL.

3. Check [TP] or [SL], select a trigger price type (mark price/last price/index price), and choose to take profit or stop loss by price or return %.

Common Issues with TP/SL in Futures Trading

Take-profit and stop-loss are crucial risk management tools in futures trading. However, issues may arise during use. Below are some common reasons why TP/SL might fail.

1. Why are my TP/SL orders not triggered?

First, the trigger price determines whether your order can be triggered. Currently, TP/SL orders can be triggered by the Last Price, Mark Price, or Index Price. These three prices are not always the same, so make sure the trigger price matches your strategy. In addition, market depth, trading halts, or system issues may also cause trigger failures.

2. Why is my TP/SL execution price different from the latest fill price?

TP/SL orders can be executed as either Market Orders or Limit Orders. If you use a Market Order, the system executes your order at the best available price in the order queue to ensure fast execution. For large orders, the system may match against multiple order book levels until the full amount is filled. This may cause slippage, resulting in an average fill price that differs from the latest price shown on the candlestick chart.

3. Why did my TP/SL orders fail to be placed after being triggered? TP/SL orders may fail to be placed even if they are triggered. Common reasons include:

1. In the Cross mode, the calculated average fill price of closing/reducing positions could fall below the position's bankruptcy price. 2. Extreme market volatility causes the price to move past your preset level so quickly that both the stop-loss and liquidation processes are triggered simultaneously.
2. The stop-loss order size exceeds the current position size. To improve the success rate, please set your stop-loss trigger price far enough from the liquidation price to allow the matching engine to process your order. If you manually reduce your position, also check the TP/SL order amount to ensure it does not exceed your holdings.

Notes:

1. If you manually close a position, all TP/SL orders under that market will be canceled. 2. TP/SL orders are flagged as "reduce-only" and will not result in opening a position in the opposite direction. 3. The platform is not responsible for any losses caused by market price fluctuations.

Gate reserves the final right of interpretation for this product. For further assistance, please visit the official Gate customer support page or contact our customer support team.