FAQ about Take Profit and Stop Loss

Announcements FAQ about Take Profit and Stop Loss

2022-10-08 02:49:08 UTC 36458 Read

[//]:content-type-MARKDOWN-DONOT-DELETE
## Q1: What is “Take Profit and Stop Loss?”
When the trigger price of a take profit and stop loss order is reached, the system will close positions according to the order price and quantity preset. This mechanism is used to manage position risk.
When triggered, a take-profit order will close the position to take profit, while the stop-loss order will close the position to control loss.

## Q2: What is SL/TP in the order zone?
It means setting SL/TP when placing an order, and the take-profit/stop-loss price can be preset. If the last price, mark price or index price reaches the trigger price, the system will close the position according to the order amount preset.

For instructions on how to set SL/TP in the order zone, please [click here](https://www.gate.io/help/futures/futures_operation_tutorial/28024/%E5%A6%82%E4%BD%95%E8%AE%BE%E7%BD%AE%E5%A7%94%E6%89%98%E5%86%85%E6%AD%A2%E7%9B%88%E6%AD%A2%E6%8D%9F "click here").

## Q3: What is SL/TP in the position tab?
It means setting SL/TP only for positions users hold.

For instructions on how to set SL/TP in the position tab, please [click here](https://www.gate.io/help/futures/futures_operation_tutorial/28024/%E5%A6%82%E4%BD%95%E8%AE%BE%E7%BD%AE%E5%A7%94%E6%89%98%E5%86%85%E6%AD%A2%E7%9B%88%E6%AD%A2%E6%8D%9F "click here").

## Q4: What is the difference between SL/TP in the order zone and position tab?
Both Stop Loss and Take Profit orders require the user to preset a trigger price.

The difference is that the order quantity for SL/TP in the order zone is only tied to the order amount placed by the user, whereas the SL/TP in the position tab is tied to the number of positions currently held.

If the user already holds a position before entry, setting SL/TP in the order zone when increasing/reducing a position will not affect the previous position, but will only relate to the amount increased/reduced.

## Q5: For what order types can you place a trigger stop order?
Users can set SL/TP for limit and market orders.

## Q6: Why is the SL/TP order not triggered?
**A1:** The last price, mark price or index price fails to reach the trigger price.

**A2:** The spread protection option might have been enabled. In such a case, the SL/TP order will not be filled if the spread of the last price, the mark price and index price exceeds the limit set by the system.
You can disable it in Setup on the futures trading page.

## Q7: Why is my position liquidated even though I set SL/TP?
**A1:** On Gate.io, the mark price will be the basis to determine whether the positions will be liquidated. If users set the last price as the trigger price for a stop order, the position can be liquidated before the order is triggered, if the last price and the mark price deviate greatly.

**A2: ** As the market price varies from second to second,  liquidation and SL/TP order might be triggered at the same time, even if users set the mark price as the trigger price.

## Q8: Why is the order not filled when the trigger price is reached?
**A1:** For short orders,  if the order price is higher than the market price after the order is triggered, and the market price keeps falling or fails to rise back to the order price, the order will not be filled.

**A2:** For long orders, if the order price is lower than the market price after the trigger of the order,  and the market price keeps rising or fails to fall back to the order price, the order will not be filled.

## Note

- In the one-side position mode, one cannot place a SL/TP order if the "Reduce-only" function is enabled.
- In the hedging mode, one can only use the SL/TP function when placing an order to open a position, while this feature is unavailable for placing an order to close a position.

For a description of the position mode and how to set it up, please refer to [Instructions of Hedging Mode](https://www.gate.io/help/futures/futures/22146/instructions-of-two-way-position "Instructions of Hedging Mode") and [How to change the position mode](https://www.gate.io/help/futures/futures_operation_tutorial/22124/how-to-open-the-two-side-position-mode "How to adjust the position mode").

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

Select language and region

Fiat Currencies