Guide to Take Profit and Stop Loss Functions in Futures Trading

This guide outlines how to use the Take Profit (TP) and Stop Loss (SL) functions on AEGET Futures to manage market risks and lock in profits effectively.

1. Basic Concepts

• Take Profit (TP): Automatically closes a position at market price when the price moves in a favorable direction and reaches the predefined profit target.
• Stop Loss (SL): Automatically closes a position at market price when the price moves against the position and hits the predefined loss threshold.

2. Parameter Definitions

• Trigger Price: The system places the close order when the market price reaches this value.
• Order Price: After triggering, the system places a market order. In volatile markets, the execution price may differ from the expected value.

3. Operation Process

• Set the trigger price.
• When the trigger is met, the system submits a market close order.
• If TP is triggered, profits are secured.
• If SL is triggered, losses are limited.

4. TP/SL in Cross Margin Mode

There are two configurations available in Cross Margin Mode:

(1) Full Position TP/SL

• Sets TP/SL for the entire position.
• Once triggered, the full position is closed at market price.
• Updates will cancel previous TP/SL settings.
• New positions automatically follow the full position TP/SL logic.

(2) Partial Position TP/SL

• Allows users to set TP/SL based on quantity or percentage for partial closeouts.
• Each TP/SL is managed independently.
• Users must manually cancel old TP/SL when updating to avoid duplicates.

5. TP/SL Auto-Cancellation Scenarios

The following conditions will cause TP/SL orders to be canceled automatically:

• Forced liquidation or auto-deleveraging before TP/SL is triggered.
• When both TP and SL are set, triggering one will cancel the other.
• If position size is fully reserved by other closing orders, TP/SL cannot be executed.

Recommendation: Regularly review open orders to prevent conflicts or execution issues.

6. Risk Reminders

• Proper use of TP/SL is essential for risk management. Adjust parameters based on market conditions.
• Market volatility may cause slippage; execution prices might differ from expected levels.
• Evaluate risk thoroughly before placing orders and use position management strategies accordingly.