How to Set TP/SL in Futures Trading? (App&Web)

Take-profit (TP) and Stop-Loss (SL) are essential tools for managing risk and securing profits in futures trading. By setting TP and SL effectively, traders can mitigate market fluctuations and enhance the execution of their strategies.

This guide provides a detailed walkthrough of setting TP and SL on the LBank, helping you manage your trading risk more efficiently.

1. What are TP and SL in Futures Trading?

Take Profit (TP) and Stop Loss (SL) help traders manage risk and secure earnings:

• Take-Profit (TP): The system automatically executes a closing order to lock in profits when the market price reaches the preset profit target.
• Stop-Loss (SL): The system automatically executes a closing order to prevent further losses when the market price reaches the preset maximum acceptable loss.

2. What's a Trigger price?

The trigger price is the price at which your buy or sell order becomes active on the exchange servers. In other words, once the market price reaches the trigger price you have set, your order is sent to the exchange servers for execution.

LBank provides two trigger price options:

• Last Price: The latest traded price in the market, which can be affected by market liquidity.
• Mark Price: A weighted average price designed to avoid premature TP/SL triggers caused by short-term price anomalies.

Using the Mark Price is generally recommended to avoid early TP/SL execution due to short-term market volatility.

3. Types of TP/SL Settings Available on LBank

1. Change (%): Define TP/SL trigger prices based on the percentage change from the entry price.

Example: 

• • Input "10%" to trigger a take-profit order when the price increases by 10%.
  • Input "-5%" to set a stop-loss when the price decreases by 5%.

2. PnL%: Set TP/SL trigger prices based on the estimated PNL%

Example:

• • Input "10%" to automatically TP when achieving a 10% profit.
  • Input "-5%" to automatically SL when the profit rate drops by 5%.

3. PnL：Set TP/SL based on the estimated Profit and Loss (PnL) amount in the base currency.

Example: 

• • Enter “100 " in the PnL field to secure profits when your gain reaches 100 USDT.
  • Enter "-50 " in the PnL field to stop losses when your loss reaches 50 USDT.

4. How to Set TP/SL?

App

1. Setting TP/SL When Opening a Position

• While placing an order, check the [TP/SL] option in the middle of the page to quickly set TP/SL prices. If you need advanced settings, after setting the order quantity, click the [Advanced] option on the right for more customization.

• In the advanced options page, you can choose the trigger price type: [Last Price] or [Mark Price], and set TP/SL based on the percentage change of the futures entry price, expected PnL, or expected PnL%.

2. Setting TP/SL After Opening a Position

• Scroll down to the [Positions] section, select the order for which you want to set TP/SL, and click on [TP/SL]. 
• In the pop-up window, choose between [Change], [PnL%], or [PnL]. Set the TP/SL trigger price using [Last Price] or [Mark Price]. The expected profit or loss amount will be displayed below the input fields.

Web

1. Setting TP/SL When Opening a Position

• While placing an order, check the [TP/SL] option in the middle of the page to quickly set TP/SL prices. If you need advanced settings, after setting the order quantity, click the [Advanced] option on the right for more customization.

• In the advanced options page, you can choose the trigger price type: [Last Price] or [Mark Price], and set TP/SL based on the percentage change of the futures entry price, expected PnL, or expected PnL%.

2. Setting TP/SL After Opening a Position

• Navigate to the [Positions] section, select the order for which you want to set TP/SL, and click the [Add] button in the TP/SL column.
• If you want to set TP/SL for the entire position, click the [Add] button in the [Position TP/SL] column.

• In the pop-up window, choose between [Change], [PnL%], or [PnL]. Set the TP/SL trigger price using [Last Price] or [Mark Price]. The expected profit or loss amount will be displayed below the input fields.

• After confirmation, the configured TP/SL orders can be viewed in the [Open Orders] section, where they can be modified or canceled at any time.

*Note：

1. The system will automatically close your position when the set TP or SL price is reached.
2. TP/SL are risk management tools but cannot guarantee complete avoidance of losses. Set sensible TP/SL levels based on your risk tolerance and market conditions.