# Take-Profit and Stop-Loss (TP/SL) ### What Are TP/SL? **Take Profit (TP):** A Take Profit order automatically closes a position when the price reaches a predetermined profit level. This ensures that traders can lock in gains without constantly monitoring the market. TP orders are beneficial in volatile markets with rapid price movements. **Stop Loss (SL):** A Stop Loss order, on the other hand, is designed to minimize losses. It automatically closes a position when the price falls to a specified level. This helps traders protect their capital and manage risk in unpredictable market conditions. ### Benefits of Using TP/SL **Risk Management:** TP/SL orders help manage risk by limiting potential losses and securing profits. **Emotion-Free Trading:** Automating these orders reduces the emotional impact of trading decisions, ensuring a more disciplined approach. **Time Efficiency:** Traders do not need to monitor the market constantly, as these orders execute automatically. **Improved Profitability:** Properly setting TP/SL can enhance trading performance by optimizing entry and exit points. ### Key Features of TP/SL **Setting TP/SL with Order Placement:** TP/SL triggers can be defined when placing an order. Once the order is executed and converted into a position, the specified TP/SL triggers are automatically associated with it. **Creating TP/SL for Existing Positions:** A TP/SL trigger can be created for positions that are already open. **Volume Customization:** Users can create a single TP/SL trigger for the entire position volume or specify a quantity (qty) derived from the position. **Order Cancellation:** If an order is canceled, any TP/SL triggers linked to it are also automatically canceled. ### Calculations and Execution **Restrictions on Full-Position TP/SL:** Only one TP and one SL can exist for the entire position. If a user attempts to create a second trigger, it will replace the first. **Partial TP/SL:** Users can set multiple partial TP/SL triggers, provided their total volume does not exceed the position size. Partial TP/SL triggers can coexist with a single full-position TP/SL without conflict. **Position Integrity:** The position should not be reversed upon executing the TP/SL order. When the backend detects a trigger price for TP/SL, it calculates the executable volume based on the current position. All other TP/SL triggers are canceled if this volume equals the entire position. ### User-Defined Trigger Calculations **ROI (Return on Investment):** The trigger price is calculated based on a specified percentage of profit. For example, if a user wants a 10% profit, the position will close once it achieves this profit. **Change %:** The trigger price is set based on the percentage change in the coin's price. For instance, setting a 10% trigger when Bitcoin’s current price is 100,000 USDT will activate the trigger at 110,000 USDT. **P\&L (Profit and Loss):** A specified profit or loss in USDT determines the trigger price. For example, if the user wants the position to close after earning or losing X USDT, the system calculates and sets the corresponding trigger price. ### Dependency of Orders on Positions **Replacing Existing TP/SL Triggers:** If a position already has TP/SL triggers for a trading pair, and a new order with TP/SL for the same pair is satisfied, the new TP/SL replaces the previously set triggers for the pair. {% hint style="info" %} ***Example:***\ \_User has a 10 BTC position with TP/SL at 90,000 USDT for 100% of the volume and places a new order to buy 2 BTC with a TP/SL at 91,000 USDT for the entire position, the TP/SL updates to 91,000 USDT after one BTC from the order is filled and the other is canceled.\_ {% endhint %} **Complementing Existing TP/SL with Partial Orders:** If a position already has TP/SL triggers and a new partial order TP/SL is set, they complement each other. {% hint style="info" %} ***Example:***\ \_User has a 10 BTC position with TP/SL at 90,000 USDT for 100% of the volume and sets a new TP/SL for 10% of the volume at 89,000 USDT, the system creates two TP/SL orders: one for 10% of the volume at 89,000 USDT and another for 90% of the volume at 90,000 USDT.\_ {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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