I. What is TP/SL?

TP/SL (Take Profit/Stop Loss) is a popular futures trading strategy:
1. TP: Enables traders to lock in their unrealized profits by closing their positions at a predetermined price.
2. SL: Safeguards traders' portfolios by automatically closing positions when the price reaches a specific level, thus minimizing the risk of further losses.
BingX offers the TP/SL feature, allowing users to set their desired TP/SL price. Once the market price reaches the pre-determined TP/SL level, your positions will be automatically closed based on the TP amount you have set.
 

2. Why was there slippage when my TP/SL market order was filled?
A market order is when traders don't need to set a specific price themselves. The order will be filled at the best available price in the order book, ensuring a swift fill. While market orders guarantee the speed of the order execution, they do not guarantee a specific price. When the order is large, it may be matched with various orders at different prices, potentially causing Slippage.
If you find the 'slippage' unacceptable, it is recommended to enable ‘Guaranteed SL’ when setting the Stop Loss (SL) order to ensure your SL order is filled at your preset price.The Guaranteed SL feature is an exclusive feature of BingX. In addition to guaranteeing the Stop Loss price for the Stop Loss order, it also supports guaranteeing the price for trigger orders. Currently available for all trading pairs, allowing you to experience perpetual trading with 0 slippage!

Please note: To manage trading risks for users, the system has protective measures to limit the filled price range of market orders. When a market order is filled, the price can deviate by up to a specified percentage. Any portion that would be executed with a price deviation greater than this percentage will not be filled and will be canceled by the system.

3. Why wasn't my TP/SL order filled despite the market price reached my trigger price?
TP/SL limit orders are limit orders that will be executed automatically by the system according to the preset order price when the market price reaches the trigger price. Please note that a limit order will only be filled if there is an order in the order book with a price that is equal to or better than your preset order price.
In the event of sharp market fluctuations, where the market price quickly moves beyond the predetermined price, it may result in failed or incomplete execution of the placed order. In this case, it's important for you to assess your risk tolerance and decide whether to wait for the order to be filled or cancel the order.

3. When should one take profit and stop loss?
In general, traders may consider setting up TP/SL when they hold positions and find it challenging to accurately predict long-term market trends. To mitigate the risk of forced liquidation, we strongly recommend setting SL for all your positions.

4. How to use Take Profit and Stop Loss?

Instructions:
You can set TP and SL simultaneously when opening Perpetual Futures positions. Please follow the steps below:
1. Enter order information, check "TP/SL" and click "Advanced" to complete the settings.
2. On "Take Profit/Stop Loss" page, you can set the trigger price and order price.
(1) Trigger price: The predetermined price that activates a TP/SL order. Once the market price reaches the trigger price, the TP/SL will be triggered. You can use the last price or mark price to trigger Take Profit and Stop Loss.
(2) Order Price: The price at which the order is sent to the market after being triggered.
 
Example:
1. One-way Sell to Close Take Profit/Stop Loss
John opens a long futures position when BTC price is $20,000, hoping to close the position for a Stop Loss when the market price drops to $16,000. He can set the order parameters as follows:
Trigger Price: 16,000
Order Price: 15,950 (Please note, when selling, it is recommended to set the price below the trigger price by a certain distance to ensure immediate execution; or choose market price)
If the price drops to $16,000, the Stop Loss is triggered, and the long position is closed with an order at $15,950. (If the order price is set as the market price, the position will be closed at the market price immediately.)
If John wants to close his long position and lock in his gains, he can set up TP with the trigger price somewhere higher than 20,000 USD.
 
Scenario 2. Close a short position with a TP or SL order
John opens a short BTC futures at the price of $20,000 and expects to close the short position to stop losses when the market price rises to $22,000. John sets SL according to parameters as shown below.
Trigger price: 22,000
Order price: 22,050 (When buying in, it is preferred to set the order price higher than the trigger price by a certain degree to ensure the order will be filled promptly. Choosing the market price is also recommended.)
If the market price goes up to $22,000, the SL order will be triggered and John's short position will be closed at $22,050. (If the order price is set as the market price, the position will be closed at the market price immediately.)
If John wants to close his short position and lock in his gains, he can set up TP with the trigger price somewhere lower than $20,000.
 
Scenario 3. Close a long position with a TP order and an SL order
John opens a long BTC futures at the price of $20,000 and expects to take profits when the market price rises to $22,000 and to stop losses when the market price drops to $18,000. John sets both TP and SL according to parameters as shown below.
TP trigger price: 22,000
TP order price: 21,950 (any price lower than the trigger price, or choose the market price)
SL trigger price: 18,000
SL order price: 17,950 (any price lower than the trigger price, or choose the market price)
If BTC's market price rises to $22,000, TP will be triggered, and John can close his position at the preset TP order price of $21,950 (or at the market price instantly if the order price is set to the market price). At the same time, the SL order with a trigger price of $18,000 will be canceled. If BTC's market price drops to $18,000, SL will be triggered, and John can close his position at the preset SL order price of $17,950 (or at the market price instantly if the order price is set to the market price). Meanwhile, the TP order with a trigger price of $22,000 will be canceled.
 
Scenario 4. Close a short position with a TP order and an SL order
John opens a short BTC futures at the price of $20,000 and expects to take profits when the market price drops to $18,000 and to stop losses when the market price rises to $22,000. John sets both TP and SL according to parameters as shown below.
TP trigger price: 18,000
TP order price: 18,050 (any price higher than the trigger price, or choose the market price)
SL trigger price: 22,000
SL order price: 22,050 (any price higher than the trigger price, or choose the market price)
If BTC's market price drops to $18,000, TP will be triggered, and John can close his position at the preset TP order price of $18,050 (or at the market price instantly if the order price is set to the market price). At the same time, the SL order with a trigger price of $22,000 will be canceled. If BTC's market price rises to $22,000, SL will be triggered, and John can close his position at the preset SL order price of $22,050 (or at the market price instantly if the order price is set to the market price). Meanwhile, the TP order with a trigger price of $18,000 will be canceled.
 

5. Are Take Profit and Stop Loss orders solely for closing positions?
Yes. The TP/SL orders placed after triggering can only be used for closing positions.
 

6. Are Take Profit/Stop Loss orders bound to existing positions?
Yes, the Take Profit/Stop Loss order is based on the current position. Without any open positions, setting TP/SL orders isn't possible. You can configure the TP/SL amount based on the available amount of your existing position.
To illustrate, if you hold a position of 50 BTC, your maximum allowable TP/SL amount is 50 BTC. Should you close 10 BTC from that position through any method, the available amount of that specific position for TP/SL will automatically adjust to 40 BTC.
Please note that setting TP/SL requires an open position; it cannot be established in the absence of such position.
 

VII. Important Note

1. Closing a position will affect the contract size of TP/SL orders. If a position is closed, the corresponding TP/SL order will be canceled.
2. The trigger price for forced liquidation may change due to user actions (such as reducing margin) or market fluctuations. Therefore, it's advisable to avoid setting the SL trigger price too close to the liquidation trigger price to prevent situations where liquidation occurs before the SL is triggered.

Risk Warning
In a highly volatile market, it's possible that TP/SL orders may not be executed or may only be partially executed. Please ensure you have a comprehensive understanding of how this feature works, remain vigilant about the associated risks, and exercise caution!
BingX holds no responsibility for any asset losses caused by market price fluctuations.