FAQ about Take-Profit / Stop-Loss (TP/SL)

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 TP/SL in the order zone?

It means setting TP/SL 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 TP/SL in the order zone, please click here.

Q3: What is TP/SL in the position tab?

It means setting TP/SL only for positions users hold.

For instructions on how to set TP/SL in the position tab, please click here.

Q4: What is the difference between TP/SL 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 TP/SL in the order zone is only tied to the order amount placed by the user, whereas the TP/SL in the position tab is tied to the number of positions currently held.

If the user already holds a position before entry, setting TP/SL 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 TP/SL for limit and market orders.

Q6: Why is the TP/SL 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 TP/SL 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 TP/SL?

A1: On Gate, 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 TP/SL 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 TP/SL order if the “Reduce-only” function is enabled.
• In the hedging mode, one can only use the TP/SL 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 and How to Adjust the Leverage, Swtich the Margin Mode or Position Mode

Possible Causes of Futures TP/SL Failure

Take-Profit / Stop-Loss (TP/SL) plays an important role in futures trading. Abnormal situations may occur during the process, and here are some possible causes of TP/SL failures.

1. Why is my TP/SL order not triggered?

First, the trigger price affects the TP/SL order. Currently,TP/SL order can be triggered with last price, mark price or index price, which are not always equal. Make sure that the trigger price is in line with your plan.

Additionally, the futures market depth, trading pauses and system issues can cause order triggers to fail.

2. Why is my TP/SL price different from the last price at that time?

Currently, you can set TP/SL in a market order or a limit order. The Market-TP/SL order will be filled at the best price in the trading queue for a quick transaction. Due to the speed, the order will be matched with multiple bids or asks in the order book when the order amount is large, until it is completely filled. Therefore trading slippage may occur, resulting in the final fill price being inconsistent with the last price.

3. Why does my order fail after the TP/SL is successfully triggered?

After a TP/SL order is triggered, it is not always possible to successfully place an order. The following are common reasons why pending orders fail:

1. In the cross mode, the system calculates that the average fill price for reducing or closing a position is lower than the bankruptcy price.
2. Market conditions fluctuate dramatically and the market price quickly breaks through the preset price, resulting in the simultaneous triggering of a stop-loss order and the liquidation process.
3. The amount of the TP/SL order is greater than that of current holdings.

When setting a stop-loss trigger price, please keep a certain distance from the liquidation price to reserve space for the system to complete the order, which can greatly increase the probability of order success.

If you reduce or close the position manually, please ensure that the amount of the TP/SL order is smaller than that of current holdings, which can also increase the probability of order success.

Notice

1. If you close a position manually, all TP/SL orders in this futures market will be closed.
2. There will not be reversed positions if both take-profit order and stop-loss order are marked as Reduce-Only.
3. Gate is not responsible for any assets loss caused by market price fluctuations.

Gate reserves the final right to interpret the product.