Take profit and stop loss orders (TP/SL)

TP/SL orders close your position when a sure profit (resp. loss) has been realized on your position.

Limit vs Market TP/SL orders

Users can choose between the TP/SL market and limit orders.

Users can control the slippage tolerance of a triggered order by setting the limit price on TP/SL orders. The more aggressive the limit price, the more likely the TP/SL order will be filled upon triggering, but the higher the potential slippage upon filling.

As a concrete example, an SL order to close a long with trigger price $10 and limit price $10 will hit the book when the mark price drops below $10. If the price drops from $11 to $9 instantly, this SL order would likely rest at $10 instead of filling. However, if the limit price were $8 instead of $10, it's likely to fill at some price between $9 and $8.

TP/SL associated with a position

TP/SL opened from the position form will have a size equal to the entire position by default. These orders will attempt to close the entire position at the time of the trigger. If a specific size is configured on these TP/SL orders, they will be fixed-sized (i.e., they will not resize with the position after being placed).

Position TP/SL orders are the most beginner-friendly because they have simple placement and cancellation criteria.