Take profit and stop loss orders (TP/SL)

TP/SL orders automatically close positions upon reaching predefined profit (TP) or loss (SL) thresholds.

The mark price serves as the triggering benchmark for TP/SL activation.

Users can configure TP/SL as either market orders (default slippage tolerance: 5%) or limit orders.

• Limit price control： Setting a limit price adjusts slippage tolerance. Aggressive limits (e.g., closer to trigger price) increase fill likelihood but may exacerbate slippage.

• Execution example：

  • A SL limit order (trigger: $10, limit: $10) for a long position enters the order book when the mark price breaches $10. If the price gap is from $11 to $9, the order may rest at $10 without filling.

  • A SL limit order with a limit $8 would likely fill between $9 to $8 during rapid declines.

TP/SL orders initiated via the position form default to the full position size, attempting complete closure upon trigger.