WEEX Futures: Take-profit and stop-loss
Dear WEEXer,
Read on to learn about our WEEX take-profit and stop-loss features.
Take-profit and stop-loss
Users can set take profit and stop loss orders within their positions.
During the setup process, users only need to enter the take-profit and stop-loss price and quantity to place the order. When the last price reaches the take-profit/stop-loss price you've set, an order for the specified number of contracts will be placed at the best available price.
Note: The maximum number of contracts for take-profit and stop-loss is the quantity available for closing the position minus the current take-profit and stop-loss quantity.
Q: What is take-profit and stop-loss (TP/SL)?
A: Take-profit refers to a common trading operation to close the position promptly and convert unrealized profit into realized profit. This profit is what users expect to generate when the contract price rises or falls to a certain price.
Stop-loss, on the other hand, refers to a common futures trading operation to close the position promptly to avoid further losses. The trader anticipates that the contract price will rise or fall to a certain point, and uses this feature to set a price at which they will suffer an acceptable amount of loss. The position will be closed when this certain price is reached to prevent further losses.
With the take-profit and stop-loss feature on WEEX, users can set the take-profit and stop-loss price in advance. When the last price reaches the set take-profit/stop-loss price, the (closing) order will be executed at the best available price for the specified quantity.
Q: When should take-profit and stop-loss be used?
A: Typically, when a user has positions and cannot keep monitoring the market, they may consider using take-profit and stop-loss orders. Users have the freedom to set take-profit and stop-loss orders under any circumstances based on their actual needs.
Q: Are take-profit and stop-loss orders only applicable to closing positions?
A: Yes. You can use trigger orders to open positions.
Q: Are take-profit and stop-loss orders based on positions?
A: Yes, the take-profit and stop-loss orders are based on your current positions. You cannot set take-profit and stop-loss orders when you have no positions. You can set the take-profit and stop-loss order quantity based on the available quantity for closing the position.
In other words, if you have a position of 500 lots, you can set take-profit and stop-loss orders with a maximum quantity of 500 lots. However, if you placed a limit order to close 100 lots before setting take-profit and stop-loss, the available quantity will become 400 lots, and the maximum quantity for take-profit and stop-loss for this position will be 400 lots.
When the quantity available for closing is zero, you cannot set take-profit and stop-loss orders.
Q: How do I cancel take-profit and stop-loss orders?
A: Take-profit and-stop loss orders will be displayed with separate labels (TP and SL) in your open trigger order list. You can manually cancel them. When you close the entire position, all take-profit and stop-loss orders will also be canceled.
Q: Can take-profit and stop-loss orders fail to be executed?
A: Yes.
It is possible for take-profit and stop-loss orders to be affected by market volatility, resulting in differences between the actual execution price and the price at that moment. Take-profit and stop-loss orders can also fail to execute or be partially executed.
Details
- ADL closing, auto-deleveraging, liquidation, and manual closure will affect the number of contracts available in the take-profit and stop-loss order. A remark that says, "Canceled due to changes in position" will be displayed.
- The change in the expected liquidation price caused by manual adjustment of the margin may cause the take-profit and stop-loss to fail.
- A maximum of 20 stop-profit and take-profit/stop-loss orders can be set for a single position.
- Elite traders are not allowed to set take-profit and stop-loss for overall positions, but they can set the TP/SL for their current elite orders.
Risk warning
If the market experiences significant fluctuations, there is a possibility that the take-profit and stop-loss orders may not be fully executed. Please make sure to fully understand how this feature works and use it with caution.
When the last price reaches the set take-profit/stop-loss price, the closing order will be executed at the best available price for the specified quantity.
WEEX is not responsible for any asset losses caused by market price fluctuations.
Gainers
