Take profit and stop loss orders (TP/SL)
OrangeBit allows traders to manage risk and lock in profits through Take-Profit (TP) and Stop-Loss (SL) orders.
These conditional orders automatically execute when the market reaches a specified price level — protecting traders from unexpected volatility and allowing for fully automated position management.
Both TP and SL orders are non-custodial and transparent. The trigger conditions are processed by OrangeBit’s off-chain matching engine for speed, while actual execution and settlement occur on-chain via smart contracts, ensuring security and verifiability.
Take-Profit (TP)
A Take-Profit order allows traders to automatically close a position once the market price reaches a target profit level.
Example:
A trader goes long on BTC-PERP at $60,000 and sets a Take-Profit price at $63,000.
When the market reaches $63,000, OrangeBit automatically executes a sell order to close the position and realize the profit.
Purpose:
• Secure profits without needing to monitor markets constantly.
• Avoid emotional decision-making and maximize disciplined trading.
Stop-Loss (SL)
A Stop-Loss order automatically closes a position once the price falls to a predefined loss threshold.
Example:
A trader opens a long position on ETH-PERP at $2,000 and sets a Stop-Loss at $1,950.
If the market drops to $1,950, the Stop-Loss triggers, closing the position to prevent further losses.
Purpose:
• Limit downside risk.
• Protect leveraged positions from liquidation.
Order Behavior
Triggering:
TP/SL orders are triggered by the off-chain matching engine for near-instant responsiveness, using verified price feeds from on-chain oracles.
Execution Priority:
Once triggered, the order becomes a market order and is executed immediately at the best available price.
Partial Fills:
In cases of rapid market movement or limited liquidity, TP/SL orders may be partially filled. Unfilled portions remain pending or cancel automatically depending on the user’s setting.
Visibility:
TP/SL parameters are displayed in the position details panel, and users can modify or cancel them anytime before triggering.
Advanced TP/SL Options
OrangeBit supports multiple modes of TP/SL to fit different trading strategies:
Single-Side Mode: One TP and one SL per position (simple configuration).
Multi-Target Mode: Multiple TP levels can be defined for staged profit-taking.
Linked Orders: A TP and SL can be attached to the same entry order, both automatically cancelled if the other triggers (OCO – One-Cancels-the-Other).
Cross-Margin & Isolated Compatibility: TP/SL works seamlessly across both margin modes, referencing margin and liquidation thresholds dynamically.
Transparency & Security
TP/SL execution logs are recorded on-chain, enabling independent verification.
OrangeBit does not control user funds; execution occurs only through smart contract authorization.
All TP/SL functions are integrated into the user’s vault contract, guaranteeing that trades are executed strictly according to predefined logic and user signatures.
In summary:
OrangeBit’s Take-Profit and Stop-Loss system provides professional-grade automation while preserving full on-chain transparency — enabling traders to control risk, secure profits, and operate confidently in volatile markets.
📘 Example: Take-Profit & Stop-Loss Execution
Market
Trading pair for perpetual contract
BTC/USDT-PERP
Position Type
Long / Short
Long
Entry Price
Initial position entry price
$60,000
Position Size
Quantity of the position
1 BTC
Leverage
Applied leverage multiple
10x
Take-Profit (TP)
Target price to automatically close the position for profit
$63,000
Stop-Loss (SL)
Trigger price to automatically close the position to prevent loss
$59,000
Trigger Mechanism
Off-chain matching engine monitors prices and triggers TP/SL conditions
Instant trigger via oracle feed
Execution Type
Converts to a Market Order upon trigger
Market Sell
Result — TP Triggered
Price reaches $63,000 → TP executes → Position closed
Profit = ($63,000 – $60,000) × 1 BTC = $3,000
Result — SL Triggered
Price drops to $59,000 → SL executes → Position closed
Loss = ($60,000 – $59,000) × 1 BTC = $1,000
Settlement
All realized PnL settled on-chain via smart contract
Immediate on-chain balance update
Fees & Funding
Deducted automatically upon settlement
Trading fee + funding rate adjustments
🧭 Visual Flow (Conceptual)
💡 Notes
Both Take-Profit and Stop-Loss orders can be managed directly from the OrangeBit trading interface.
Orders can be linked (OCO mode), modified, or cancelled prior to triggering.
Execution speed and slippage depend on market volatility and liquidity depth.
All TP/SL executions are fully auditable on-chain for transparency.
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