What are Take Profit/Stop Loss (TP/SL)?
Take Profit (TP) and Stop Loss (SL) are tools that help traders manage risks, secure profits, and automate the trading process without the need for constant market monitoring. Utilizing TP/SL helps limit losses when the market moves against the position or lock in profits when the market price reaches the preset stop price.
How TP/SL works on ONUS Pro
On ONUS Pro, Take Profit and Stop Loss orders operate based on the Stop Market mechanism. When the TP or SL trigger price is reached, the system will automatically place a market order to close the position. The execution of the order depends on market liquidity and the trading rules of each trading pair.
Users can set TP/SL in the following ways:
- Set TP/SL when opening a position: Users can set their desired take profit or stop loss levels when placing an order.
- Modify TP/SL on an active position: During the trade, users can adjust TP/SL levels based on market fluctuations to optimize profit or minimize risk.
- Use reverse orders such as Stop Market, Stop Limit, or Limit Orders: TP/SL can be set using these order types along with the Reduce Only option to ensure the system only partially closes the position instead of opening new ones.
TP/SL Trigger Mechanism
TP/SL orders can be triggered based on either the Last Price or the Mark Price:
- Last Price: Suitable when users want TP/SL to be executed based on actual market prices.
- Mark Price: Helps avoid liquidation due to temporary price volatility, especially when using high leverage.
Price Limit
| Position Type | TP/SL that can be set | Order Type |
| Buy (Long) | Trigger Price > Market Price | TP |
| Liquidation Price ≤ Trigger Price ≤ Market Price | SL | |
| Sell (Short) | Trigger Price < Market Price | TP |
| Market Price ≤ Trigger Price ≤ Liquidation Price | SL |
Important Notes
- Stop Loss does not guarantee avoidance of liquidation: Setting a Stop Loss does not ensure that your position will always be closed before liquidation. If the price moves too quickly or market liquidity is insufficient, the order may not be executed in time. Therefore, users should actively manage their risk by monitoring the market and adjusting positions accordingly.
- Price deviation protection mechanism: In some cases, if there is a large gap between the Last Price and the Best Price, Take Profit orders may not trigger immediately. This mechanism is designed to prevent orders from being executed at unfavorable prices, which could negatively impact user profits. It serves as a safeguard against extreme market volatility.
- For large position sizes: In certain situations, a position may require more than one TP or SL order to be fully closed. This occurs when the position size exceeds the maximum amount a single Market Order can execute.