Take profit and stop loss are common risk management tools in futures trading. Investors can pre-set a target take-profit price and a stop-loss price. When the market price reaches the set conditions, the system will automatically trigger a closing order, helping to control risks and lock in profits.
When trading futures on NodeXX, you can set take profit/stop loss in the following two ways:
Method 1: Set take profit/stop loss when placing an order
On the futures order placement page, enter the order quantity, check the 【TP/SL】 box in the order area, and set your expected take-profit and stop-loss trigger prices. The order takes effect once it is successfully placed.
Method 2: Add a TP/SL order to an existing position
If you already hold a position, go to the 【Positions】 page, locate the corresponding contract, and click 【Add】 to set your take profit/stop loss.
Trigger Price Types
NodeXX supports two prices as the trigger basis for take profit/stop loss: Mark Price and Last Price. You may choose according to your trading strategy.
Position Modes for TP/SL
- Partial Position: Applies only to a fixed quantity of the position. When the position size changes, the TP/SL order quantity remains unchanged. Multiple TP/SL orders are allowed in this mode.
- Entire Position: Applies to the whole position. When the position size changes, the TP/SL order quantity changes accordingly. When the price reaches the trigger price, the position is closed at market price. Only one TP/SL order is allowed in this mode.
Execution Types: Market vs. Limit
Once triggered, TP/SL supports two execution types: market and limit. Their mechanisms differ and each has its own advantages and disadvantages. Please choose according to your risk preference:
| Item | Market TP/SL | Limit TP/SL |
|---|---|---|
| Execution | Executes immediately at the best available market price once triggered | Places a limit order at your pre-set price once triggered |
| Advantage | Guaranteed execution. Ensures timely closing even in extreme market conditions, preventing further losses | Locks in the execution price. The fill price meets your expectations |
| Disadvantage | Execution price is not guaranteed. During sharp market volatility or insufficient order book depth, the actual fill price may deviate from the trigger price (i.e., "slippage"), depending on market conditions | Execution is not guaranteed. When the market moves rapidly and the price gaps through the limit price, the order may not be filled, and the position remains exposed to market risk |
| Best for | Prioritizing guaranteed closing and timely stop loss | Prioritizing a guaranteed fill price |
In short: a market order guarantees execution but not price; a limit order guarantees price but not execution. Please choose based on market conditions and your own risk tolerance. During periods of high volatility, market orders are recommended to ensure execution.
Notes
- When TP/SL is set, the position is not frozen before the order is triggered;
- The stop-loss price must be set before the liquidation price: for a long (buy-up) position, the stop-loss price cannot be lower than the liquidation price; for a short (buy-down) position, the stop-loss price cannot be higher than the liquidation price. When the market price reaches the liquidation price, the position will be forcibly closed by the system. Please make sure to set your stop-loss price before the liquidation price; otherwise, the position may be liquidated before the stop loss takes effect;
- A market TP/SL order, once triggered, will be filled at the best available market price. The actual fill price may differ from the price you set, depending on market conditions;
- A limit TP/SL order is placed at your pre-set price after being triggered and may not be filled during rapid market movements. Please continue to monitor your orders and positions;
- If the position size exceeds the maximum quantity allowed for a single market order, or if the margin is insufficient at the time of triggering, the TP/SL order may fail.
Risk Warning: Futures trading involves high risk and extreme price volatility. Although take profit/stop loss are common risk management tools, they cannot fully eliminate trading losses, including but not limited to price deviation (slippage) of market orders under extreme market conditions and unfilled limit orders. Please fully understand the relevant rules and mechanisms, and make prudent, rational decisions based on your own risk tolerance.
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