The AlphaX take profit/stop loss (TP/SL) feature enhances risk management by allowing users to set both take profit and stop loss orders simultaneously. With this feature, you can preset TP/SL when placing an order. This includes limit orders, market orders, and conditional orders. All settings are managed directly on the trading interface.
- What does TP/SL mean?
A take profit order is automatically triggered when the price reaches a preset target. This feature allows users to lock in profits and close their positions.
A stop loss order is automatically triggered when the price reaches a predefined level, closing positions to limit losses.
TP/SL can be applied in different scenarios, including open positions, partial execution, and trailing TP/SL.
- TP/SL for entire position
This feature applies TP/SL orders to the entire position, including existing holdings and any subsequent increases or reductions. When the market price or mark price reaches the trigger price, the system will place an order for the entire position based on the preset order price or the best available execution price. If a TP/SL order is triggered before other orders, all remaining unfilled orders for the position will be automatically canceled, and the TP/SL order will be executed to fully close the position. If the position has already been fully closed, the TP/SL order will be automatically canceled.
Example:
Assume the current position size is 1 BTC. If a TP/SL for the entire position is set, once triggered, the system will automatically cancel all opposing limit orders for that position to ensure a full closure. If the position has already been fully closed, the TP/SL order will be canceled automatically.
- TP/SL for partial execution
When the market price or mark price reaches the preset TP/SL trigger price, the system will place an order for the specified size based on the preset order price or the best available execution price. If the TP/SL order is triggered and the remaining position size is smaller than the preset one, only the remaining position will be closed. Any other unfilled orders for the position will remain unaffected.
Example:
Assume the current position size is 1 BTC, with a partial TP/SL set for 1 BTC and an additional unfilled limit order of 0.2 BTC. When the partial TP/SL is triggered, only 0.8 BTC of the position will be closed, while the 0.2 BTC limit order will remain active.
- Trailing TP/SL
Trailing TP/SL is a dynamic trading strategy that allows users to place TP/SL orders during market retracement. When the market price or mark price reaches the highest or lowest price set for the strategy and the callback rate reaches ±1%, the system will place an order at the best available market price. If the TP/SL order is triggered and the remaining position size is smaller than the preset one, only the remaining position will be closed. Any other unfilled orders for the position will remain unaffected.
Example:
Assume the current position size is 1 BTC, with a partial TP/SL set for 1 BTC and an additional unfilled limit order of 0.2 BTC. When the partial TP/SL is triggered, only 0.8 BTC of the position will be closed, while the 0.2 BTC limit order will remain active.
You can also refer to our Trailing TP/SL FAQ to learn more.
During periods of high market volatility, the actual execution price of a TP/SL order may differ from the trigger price. TP/SL orders may also be partially filled or fail to execute completely.
Understanding the different types of TP/SL orders can help make more informed trading decisions and improve overall trading experience on AlphaX. AlphaX provides users with the flexibility to choose trading strategies that best fit their individual risk preferences and trading needs.