Possible Causes of Futures SL/TP Failure

Announcements Possible Causes of Futures SL/TP Failure

2023-12-15 03:53:11 UTC 6781 Read

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Take-Profit / Stop-Loss (SL/TP) plays an important role in futures trading. Abnormal situations may occur during the process, and here are some possible causes of SL/TP failures.

## 1. Why is my SL/TP order not triggered?
First, the trigger price affects the SL/TP order. Currently, SL/TP order can be triggered with last price, mark price or index price, which are not always equal. Make sure that the trigger price is in line with your plan.

Additionally, the futures market depth, trading pauses and system issues can cause order triggers to fail.

## 2. Why is my SL/TP price different from the last price at that time?

Currently, you can set SL/TP in a market order or a limit order. The Market-SL/TP order will be filled at the best price in the trading queue for a quick transaction. Due to the speed, the order will be matched with multiple bids or asks in the order book when the order amount is large, until it is completely filled. Therefore trading slippage may occur, resulting in the final fill price being inconsistent with the last price.

## 3. Why does my order fail after the SL/TP is successfully triggered?
After a SL/TP order is triggered, it is not always possible to successfully place an order. The following are common reasons why pending orders fail:

1. In the cross mode, the system calculates that the average fill price for reducing or closing a position is lower than the bankruptcy price.
2. Market conditions fluctuate dramatically and the market price quickly breaks through the preset price, resulting in the simultaneous triggering of a stop-loss order and the liquidation process.
3. The amount of the SL/TP order is greater than that of current holdings.

When setting a stop-loss trigger price, please keep a certain distance from the liquidation price to reserve space for the system to complete the order, which can greatly increase the probability of order success.

If you reduce or close the position manually, please ensure that the amount of the SL/TP order is smaller than that of current holdings, which can also increase the probability of order success.

### Notice
1. If you close a position manually, all SL/TP orders in this futures market will be closed.
2. There will not be reversed positions if both take-profit order and stop-loss order are marked as Reduce-Only.
3. Gate.io is not responsible for any assets loss caused by market price fluctuations.

Gate.io reserves the final right to interpret the product.

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