Stop Loss
A Stop-Loss (SL) order automatically closes your position when the market moves against you and reaches your defined loss threshold. It’s designed to help you manage risk and limit potential losses.
Trigger Conditions
A Stop-Loss order is activated when your selected trigger price source — Latest, Mark, or Index — reaches or exceeds the stop price you set.
Long (Sell) → Triggered when the market price falls to or below your stop price.
Short (Buy) → Triggered when the market price rises to or above your stop price.
Once triggered, the Stop-Loss order converts into either a Market or Limit order based on your chosen execution type.
Execution Types
Stop-Market Order
Once triggered, the order converts to a market order, executing immediately at the best available price.
The execution price may differ from your stop price due to slippage or price gaps, particularly in fast-moving markets.
Partial fills may occur depending on liquidity at the time of execution.
Stop-Limit Order
Once triggered, the order becomes a limit order at your specified limit price.
Provides price control, but execution is not guaranteed — if the market continues to move away from your limit price, the order may remain unfilled and fail to provide stop-loss protection.
Parameter Recommendations
Long (Sell)
Trigger Price ≥ Limit Price
Setting the limit price slightly below the trigger price increases the chance of execution during downward movement.
Short (Buy)
Trigger Price ≤ Limit Price
Setting the limit price slightly above the trigger price increases the chance of execution during upward movement.
Trigger Price Source
Choose which price source triggers your Stop-Loss order:
Mark Price — Reduces the chance of false triggers caused by short-term price spikes.
Last Traded Price — More sensitive to rapid market movements but may trigger early during volatility.
Index Price — Reflects an aggregated market rate and offers stability during abnormal price fluctuations.
Risk Reminder
During extreme volatility, Stop-Market orders may execute far from your trigger price.
Stop-Limit orders may fail to execute if the market price moves past the limit price too quickly.
In both cases, your position may remain open longer than expected, increasing potential losses.
For most users, Mark Price triggers offer the best balance between stability and timely activation.
👉For details on how to set a stop loss order, please refer to this page.
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