User Guide — Introduction to Take Profit and Stop Loss (TP/SL) in Futures Trading

Technical Analysis Crypto Basics Trading

By: WEEX|Sep 9, 2025

What is TP/SL in Crypto?

Take profit (TP) and stop loss (SL) are fundamental risk management tools used in futures trading. Take profit allows traders to close a position when the price reaches a predefined profit target, locking in gains—this is essential to know for anyone learning how to take profits in crypto. Stop loss, on the other hand, automatically closes a position at a specified price level to prevent further losses, serving as a fundamental crypto stop loss mechanism.

In essence, TP/SL is a foundational strategy for protecting profits and managing risk. By setting both take-profit and stop-loss orders, traders can secure earnings when the market moves favorably and limit losses during unfavorable movements. This approach is central to understanding how to take profit in crypto effectively.

For example, if you buy Bitcoin at 70,000 USDT and set a take-profit order at 75,000 USDT and a stop-loss order at 65,000 USDT, your position will close automatically when either of these price levels is reached—demonstrating a clear method for how to take profit from crypto.

When to Use TP/SL in Crypto?

TP/SL orders are particularly useful when traders have open positions but are unable to monitor the market continuously. These orders can be applied at any time while a position is held, though it’s important to note that TP/SL is used only for closing positions, not opening new ones. A common question among traders is when to take profits in crypto; using TP orders allows you to predetermine this exit point.

Secure Target Profits: Take-profit orders help realize gains when the market performs as expected and the price hits the desired level. This is a key technique in how to take profits from crypto without selling immediately upon every fluctuation.
Cap Potential Losses: Stop-loss orders reduce risk by closing a position once the price reaches a predetermined threshold, protecting against excessive losses. Users often ask how to set a stop loss on crypto com or similar platforms—the principle remains consistent across exchanges.

Trigger Price Options: Mark Price vs. Last Price

When configuring take-profit and stop-loss orders, traders on WEEX can choose between the last price and the mark price as the trigger mechanism. Each option offers distinct advantages and limitations based on trading style and risk appetite.

Pros and Cons of Using the Last Price

The last price reflects the most recent transaction price in the futures market, offering real-time data. It is well-suited for short-term traders and ensures relatively precise execution in liquid markets. However, it is also more susceptible to market noise and short-term volatility, which may lead to premature order triggers. In less liquid conditions, slippage can also occur.

Pros and Cons of Using the Mark Price

The mark price is derived from an index price and funding rate, designed to reflect a fair value and minimize the impact of short-term volatility or market manipulation. It is often preferred by medium- to long-term traders. That said, the mark price may react more slowly to abrupt market shifts, which could be less ideal during highly volatile periods.

Read more: What is Limit Order?

TP/SL Order Types: Market Orders vs. Limit Orders

On WEEX, users can choose between two types of TP/SL orders: market orders and limit orders. This functionality is similar to what traders might seek when wondering can I set a stop loss on crypto com or other platforms.

Market TP/SL Orders: Traders only need to set the trigger price. Once reached, the order is executed immediately at the best available market price.
Limit TP/SL Orders: Traders must set both a trigger price and a limit price. The order will be executed only if the market reaches the limit price or better. If the limit price isn’t met, the order may not be filled.

To improve the execution probability of a limit order, the limit price for a sell order should be set lower than the trigger price, and for a buy order, higher.

Additional Considerations

Unfilled TP/SL orders will be canceled if the position is closed—whether manually, by liquidation, or via other means.
Adjusting margin manually may change the liquidation price and affect TP/SL order performance.
A maximum of 20 TP/SL orders can be active at once.
During extreme market volatility, orders may not be filled, may be partially filled, or executed at a different price than expected.
Elite traders on WEEX cannot set TP/SL for the entire position but can manage orders individually under "My Trades."

Conclusion

TP/SL and trailing stop-loss are essential tools for managing risk and protecting profits in futures trading. TP/SL offers a straightforward way to secure gains and limit losses, while trailing stops provide a more flexible approach that adapts to market movements. Understanding how do you take profits in crypto is made simpler through these automated tools.

Both strategies help traders maintain discipline, reduce emotional decision-making, and operate effectively in various market conditions. Whether you're exploring stop loss on crypto com or other platforms, the concepts remain universally applicable.

For a user-friendly and secure platform to apply these tools and elevate your trading strategy, consider using WEEX Exchange. Open your account now and trade with confidence.