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Stop-Loss & Take-Profit

Stop-loss and take-profit orders automatically close your position when price reaches specified levels, helping you manage risk and lock in profits.

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Overview

Stop-Loss

Closes your position to limit losses when price moves against you.

Take-Profit

Closes your position to lock in gains when price reaches your target.
These orders are set when opening a trade and execute automatically without requiring you to be online.

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How They Work

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Stop-Loss

A stop-loss order triggers when the oracle price reaches your specified level:
  • Long Position
  • Short Position
Stop-loss is set below your entry price. Example: - Entry: 50,000−Stop−Loss:50,000 - Stop-Loss: 48,000 - If price falls to $48,000, position closes automatically - Loss limited to ~4% of position size

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Take-Profit

A take-profit order triggers when the oracle price reaches your target:
  • Long Position
  • Short Position
Take-profit is set above your entry price. Example: - Entry: $50,000
  • Take-Profit: 55,000−Ifpricerisesto55,000 - If price rises to 55,000, position closes automatically - Profit of ~10% of position size secured

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Setting Stop-Loss & Take-Profit

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When Opening a Trade

1

Configure Position

Set your trading pair, direction, collateral, and leverage.
2

Enable Stop-Loss

Toggle on the Stop-Loss option and enter your price level.
3

Enable Take-Profit

Toggle on the Take-Profit option and enter your target price.
4

Review

The order summary will show: - Distance to stop-loss (% and )−Distancetotake−profit() - Distance to take-profit (% and ) - Potential loss at stop-loss - Potential profit at take-profit
5

Submit

Your stop-loss and take-profit are included with the trade.

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Modifying Active Orders

To change stop-loss or take-profit on an open position:
  1. Go to your active positions
  2. Click the edit icon next to the position
  3. Adjust your stop-loss or take-profit levels
  4. Confirm the modification
Modifications require a small gas fee for the on-chain update.

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Strategic Considerations

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Setting Stop-Loss Levels

Place stops below support (for longs) or above resistance (for shorts). Avoid obvious round numbers where many stops cluster.
Set a fixed percentage loss you’re willing to accept (e.g., 5% of position). Consistent risk per trade.
Use ATR (Average True Range) to set stops. Higher volatility = wider stops to avoid being stopped out by noise.
Always set stops well above your liquidation price. A stop at -8% is better than liquidation at -9%.

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Setting Take-Profit Levels

Set take-profit to achieve at least 1:2 risk-reward. If risking 100 USDC to stop, target 200 USDC profit.
Target key technical levels where price historically reversed. These provide natural exit points.
Consider moving take-profit higher as the trade moves in your favor to capture extended moves.
When partial close is available, consider multiple take-profit levels to scale out of winning trades.

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Example Scenarios

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Scenario 1: Disciplined Long Trade

Setup:
- Entry: $50,000
- Collateral: 100 USDC
- Leverage: 10x
- Position Size: 1,000 USDC
- Stop-Loss: $48,000 (-4%)
- Take-Profit: $54,000 (+8%)

Outcomes:
A) Price hits take-profit → Profit: $80 (80% return)
B) Price hits stop-loss → Loss: $40 (40% loss)
C) Risk-Reward Ratio: 1:2 ✓

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Scenario 2: High Leverage Short

Setup:
- Entry: $3,000
- Collateral: 50 USDC
- Leverage: 20x
- Position Size: 1,000 USDC
- Stop-Loss: $3,060 (+2%)
- Take-Profit: $2,880 (-4%)

Outcomes:
A) Price hits take-profit → Profit: $40 (80% return)
B) Price hits stop-loss → Loss: $20 (40% loss)
C) Risk-Reward Ratio: 1:2 ✓

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Important Considerations

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Execution Price

Stop-loss and take-profit orders execute at the oracle price when triggered, not necessarily at your exact set price:
  • In normal conditions, execution is very close to your level
  • In fast markets, there may be slight slippage
  • Orders queue for execution and settle on the next oracle update

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Gas Requirements

Ensure your wallet has enough ETH for:
  • Opening the trade (includes setting SL/TP)
  • Any modifications to SL/TP levels
  • Potential manual close

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No Guarantee Against Gaps

In extreme market conditions (flash crashes, exchange outages):
  • Price may gap through your stop-loss
  • Execution may occur at a worse price
  • Liquidation may occur before stop-loss in severe cases
Stop-losses reduce risk but don’t eliminate it. Never trade with money you can’t afford to lose.

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Best Practices

Never open a leveraged trade without a stop-loss. Decide your max loss before entering.
Stops too close to entry will get triggered by normal market noise. Give trades room to breathe.
Once a trade is profitable, consider moving your stop-loss to your entry price to eliminate risk.
If your stop is about to hit, accept the loss. Moving stops further away usually leads to bigger losses.
Trust your original analysis. Don’t constantly adjust stops based on emotion.

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Troubleshooting

  • Verify the price actually reached your stop level on the oracle (not just on exchanges) - Check that your position is still open - In extreme volatility, execution may be delayed
Oracle price at execution may differ slightly from your set level, especially in fast markets. This is normal behavior.
  • Ensure you have ETH for gas - The position must still be active - Try refreshing the page

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Next Steps

Fees

Understand all trading costs.

Trading Overview

Review trading fundamentals.