What Are Take Profit and Stop Loss?

In contract trading, Take Profit and Stop Loss are risk management tools that help users set position closing conditions in advance.

You can set or modify Take Profit and Stop Loss in the following situations:

• When opening a position;
• Any time after opening a position.

The system will attempt to automatically close your position once the conditions you set are met.

You can configure them in the following two ways:

• By price;
• By estimated PnL%.

Take Profit

Take Profit means that when the market price reaches your preset profit target, the system will attempt to automatically close your position to help lock in profits.

For example:

You open a long BTC position with an entry price of 100,000 USDT.

If you set the Take Profit price at 105,000 USDT, the system will attempt to close your position when the BTC price rises near that level.

Take Profit can help prevent missed unrealized profits during market pullbacks.

Stop Loss

Stop Loss means that when the market price reaches your preset loss control condition, the system will attempt to automatically close your position to help limit losses.

For example:

You open a long BTC position with an entry price of 100,000 USDT.

If you set the Stop Loss price at 95,000 USDT, the system will attempt to close your position when the BTC price falls near that level.

Stop Loss helps control risk and prevent losses from increasing further.

How to Set Take Profit and Stop Loss

You can configure them in two ways:

1. By Price

Set the target price directly.

The system provides:

• Quick percentage options;
• Manual price input.

For example:

• Take Profit Price: 105,000 USDT
• Stop Loss Price: 95,000 USDT

When the market price reaches the corresponding condition, the system will attempt to close your position.

2. By Estimated PnL%

You can also configure Take Profit and Stop Loss based on estimated profit and loss percentage.

The system provides:

• Quick PnL% options;
• Manual percentage input.

For example:

• Take Profit: +50%
• Stop Loss: -20%

The system will automatically calculate the corresponding trigger price based on your entry price, leverage, and position details.

Please note:

• Actual returns may be affected by leverage, position size, fees, and market volatility;
• Under different positions, the same PnL% may correspond to different trigger prices.

How to Modify Take Profit and Stop Loss After Opening a Position

After opening a position, you can still adjust your Take Profit and Stop Loss settings at any time.

Steps:

• Go to your Perpetual position page
• Click the 🗑️ icon to delete the TP or SL
• Re-add your new TP or SL
• Done

After modification, the updated settings will take effect immediately, and the system will use the latest conditions for execution.

Why Use Take Profit and Stop Loss?

The contract market can be highly volatile. Setting Take Profit and Stop Loss in advance can help you:

• Lock in profits when your target is reached;
• Control losses during unfavorable market conditions;
• Reduce emotional trading decisions;
• Manage position risk more effectively.

Updated on: 19/05/2026