What is Take-Profit (TP) / Stop-Loss (SL)?

Take-Profit (TP) and Stop-Loss (SL) are commonly used risk management tools in contract trading.

• 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.

By setting TP and SL, traders can execute their strategies more systematically amid market fluctuations. This is especially important in contract trading, as it helps manage funds more efficiently and control trading risks.

What's a Trigger price?

The trigger price refers to the price you set at which the system will automatically activate your buy or sell order. In other words, the order will only be submitted to the exchange for execution once the market price reaches your specified trigger price.

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.

Types of Take Profit/Stop Loss

1. Change(%): Set trigger prices for Take Profit and Stop Loss based on the percentage change of the futures 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 trigger prices for Take Profit and Stop Loss based on the expected PnL.

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.

3. PnL%: Set the trigger price for Take Profit and Stop Loss based on the expected PNL%.

Example:

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

How to Set TP/SL?

Web

1. Set TP/SL When opening a Position

• Hook [TP/SL], enter the [Trigger Price] , and tap [ Open Long] or [Open Short] .

• Tap [Advanced], choose the [Last Price] or [Mark Price], then tap [Increase] to choose the type as needed [By choose], [By PnL] or [By PnL%] and tap [Confirm].

•  Enter [TP/SL] Amount and tap [Confirm].

2. Set TP/SL After opening a Position

• In [Open Positions], select the order you want to set TP/SL and tap [Add]. If you want to set TP/SL for the entire position, tap [Add] under [Position TP/SL].

• Choose the [Last Price] or [Mark Price], then tap [Increase] to choose the type as needed [By choose], [By PnL] or [By PnL%] and tap [Confirm].

• Enter  [TP/SL] Amount and tap [Confirm].

• Once confirmed, the order appears in [Open Orders] for modification or cancellation.

App

1. Set TP/SL When Opening a Position

• Hook [TP/SL], when opening a position. Enter your [TP Price] and [SL Price] for a quick setup.Tap [Open Long] or [Open Short] to place the order.

• Tap [Advanced], choose the [Last Price] or [Mark Price], then tap [Increase] to choose the [By choose], [By PnL] or [By PnL%] and tap [Confirm].

2. Set TP/SL After opening a Position

• In [Positions], select the order you want to set TP/SL and tap [TP/SL]. Choose [Fixed Amount] or [All Positions],then select the trigger price type [Last Price] or [Mark Price]. Tap [Changes] to choose the [By change], [By PnL] or [By PnL%]

• Enter  [TP/SL] Amount and tap [Confirm].

• Once confirmed, the order appears in [Orders] for modification or cancellation.

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.

*In case of translation discrepancies, the English version prevails.