Take Profit refers to investors who is making a profit in the current market and wants to lock the profits in case of any price decline in the market, so the investor closes out the position. When the market is good and the investor is making a profit in the books, continuous profit-taking allows the investor to obtain stable income. On the other hand, take profit will help the investor to avoid losses due to the falling profits in a bad market.
Stop Loss refers to investors who is making a loss in the books and to avoid more losses in case of further price decline in the market, so the investor closes out the position at a predetermined amount or ratio in a timely manner.
Users can set up the Take Profit / Stop Loss after a contract is opened successfully. The user will pre-set a trigger price so when the market reaches the trigger price, the system will automatically execute the order according to the market price. The user is not required to enter the number of positions for Take Profit / Stop Loss as the system will automatically closes all positions in the same direction for the contract once the Take Profit / Stop Loss is triggered.
After the user has set the Take Profit / Stop Loss, if there is new position opened, new position closed or forced liquidation occurs, the number of closed position corresponding to the Take Profit / Stop Loss order will also increase or decrease accordingly. The Take Profit / Stop Loss will apply to all the valid positions.
In the event of an unusual market condition which causes the execution of the Take Profit / Stop Loss to fail in partial or in whole, the user will have to liquidate the positions manually in a timely manner to minimize the losses caused by the market volatility.
This information does not constitute any investment advice. Investors should not substitute their independent judgment or make decisions solely based on such information. This also does not constitute any transactions or guarantee any income. Please be prudent and stay alert to position and risk control.