How To Set Take Profit and Stop Loss When Placing an Order in KuCoin Futures? (APP)
07/29/2021, 22:59:47
Setting “Take Profit & Stop Loss" is quite common in Futures trading. Users can set the take profit or stop loss price to control the risks and keep profit while curbing losses. In KuCoin Futures, there are two ways to set take profit and stop loss: 1) Set when placing an order and 2) Set in positions.
Most users know how to set Take Profit & Stop Loss in positions, so how about setting it when placing an order? Taking KuCoin App as an example, we will clarify the differences between the two types of settings.
1. What is "Set Take Profit & Stop Loss When Placing an Order"?
Just as its name implies, users can set the take profit or stop loss price when creating an order (limit or market) or a position. When the order is executed (fully or partially), the Take Profit & Stop Loss will take effect to control the risks.
2. How to set "Take Profit & Stop Loss"?
There are only two steps: 1) Enable the feature of Take Profit & Stop Loss, 2) Set Take Profit & Stop Loss when placing an order.
Step 1: Enable the feature of Take Profit & Stop Loss
Take Profit & Stop Loss is not displayed on the interface by default. To enable this feature, users need to tap the "…" icon on the upper right corner of the page, then tap "Feature Preference" --> enable "Take Profit & Stop Loss".
Step 2: Set the Take Profit & Stop Loss price when placing an order
In the order-placing panel for Limit and Market order, tap "Take Profit & Stop Loss", and choose "Last price" or "Mark price" to trigger the order. Please DO NOT set the "Reduce Only" and "Take Profit & Stop Loss" at the same time because the two settings will lead to the reduction of positions, and they are incompatible.
Take Profit & Stop Loss - Limit Order
Take Profit & Stop Loss - Market Order
Besides, Take Profit & Stop Loss only takes effect when the order was successfully executed. Once the order is executed, users can check details in the “My Orders” list (see chart below).
3. Set when placing an order VS. Set in positions
(1) Similarities
Both setting methods can keep the profits and losses within the controllable range.
When setting the take profit or stop loss prices, the take profit price cannot be inferior to the order price whereas the stop loss price cannot be superior to the order price. Taking the limit order as an example, the take profit or stop loss price will be affected by the side of the position, users can place the order only when the price meets the requirement.
(2) Differences
Obviously, there are differences between the two setting methods (see the table below):
4. FAQs
1) Why is the setting for Take Profit & Stop Loss unavailable for Stop Order?
The Take Profit & Stop Loss order itself is a stop order, so users cannot set the stop order again.
2) When will the Take Profit & Stop Loss become invalid?
A. It will become invalid when the order is cancelled before it is executed.
B. It will become invalid when the position is closed or the size of the position is 0.
3) What is the relation between take profit and stop loss?
A. On the one hand, the two are compatible. If users set Take Profit & Stop Loss when placing orders, it is still possible to set Take Profit & Stop Loss in their positions.
B. On the other hand, the two are independent. When take profit or stop loss of the same position is triggered, the other one will automatically be invalid.
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