TradingPerpetuals
Take Profit and Stop Loss
Conditional orders for automatic position management
Take Profit and Stop Loss
MuchFi provides conditional orders that automatically close positions when predetermined profit or loss levels are reached.
Take-Profit & Stop-Loss Limit Orders
Purpose
These orders automatically close positions at specified price levels using limit orders.
Key Parameters
| Parameter | Description |
|---|---|
| Amount | Portion of position to close |
| Trigger Price | Price at which order activates |
| Limit Price | Price at which order is placed |
Requirements
- Order amount cannot exceed existing position size
- Total TP/SL orders must not surpass the Reduce-Only cap (prevents order book DOS attacks)
Mechanics
- Take-profit orders function like standard limit orders on the book once triggered
- Stop-loss orders require signing and are posted by keepers when market conditions are met
- For ask SL: triggered when best bid falls below the Limit Price
- For bid SL: triggered when best ask rises above the Limit Price
Take-Profit & Stop-Loss Market Orders
Purpose
Similar to limit variants but execute as market orders rather than limit orders for guaranteed execution.
Key Parameters
| Parameter | Description |
|---|---|
| Amount | Position size to close |
| Trigger Price | Price at which order activates |
| Limit Price | Maximum (bid) or minimum (ask) acceptable fill price |
Execution
Keepers trigger these orders when:
- For sells: Best bid reaches ≤ Trigger Price
- For buys: Best ask reaches ≥ Trigger Price
Best Practices
Tip
- Set take-profit levels at realistic price targets based on technical analysis
- Use stop-losses to limit downside risk on every position
- Consider market volatility when setting trigger prices
- Monitor positions during high-volatility periods