How to Use the Stop-Limit Function

A stop-limit order is a market order that has both a stop price and a limit price. When the stop price is reached, it triggers the limit order or market price. The limit price is the specific price of the limit order the stop price triggers.

BitWell has two types of stop-limit orders:

  • Set stop-limit order on opening positions: when placing an order set up a take profit and stop loss strategy for closing the position, in which case only the market price take profit and stop loss can be set.
  • Set stop-limit order when holding positions: Set the take profit or stop loss strategy for closing the position in the position, after setting it up, it will hang the closing order according to the set trigger price, where you can choose between market price and limit price.

BitWell perpetual contract order types include limit, market, maker only, trigger order, average order, same-side best, sell plus/buy minus, etc. All these order types can be combined with the stop-limit order.

How to set Stop Loss and Take Profit

Set Stop Loss and Take Profit on Limit Orders as an example.

Set stop-limit order on opening positions

When placing a limit order in a perpetual contract, you can set both a ‘Take Profit’ and ‘Stop Loss’ order.

1. Select ‘Limit Order’, enter the price and amount, then tick ‘take profit/stop loss’. Click ‘Open Long’ or ‘Open Short’ to place your order.

2. After an order is fully filled, the system will generate a close order according to the preset price and the amount, which can be viewed in the ‘Open Orders’.

Set stop-limit order when holding positions

1. Select the order type ‘Limit Order’, enter the amount and price, uncheck the ‘Stop Order’ box and click on ‘Open Long/Open Short’.

2. After placing an order, you can click ‘Stop Loss and Take Profit’ in ‘Open Pos’.

3. Add a Stop Loss and Take Profit pop-up window, switch between proportional mode and price mode for setting at market price, and display the estimated profit/loss after entering the commission price, trigger price, and amount.

Estimated P/L is calculated as follows.

  • Limit: Profit/loss (long) = (order price – average price of open position) * conts of orders * contract multiplier
    Profit/loss (short) = (average opening price – order price) * conts of contracts * contract multiplier
  • Market Price: P/L (long) = (trigger price – average open price) * conts of contracts * contract multiplier
    Profit/loss (short) = (average open price – trigger price) * conts of contracts * contract multiplier

If you have already set a stop loss and take profit when placing an order, you can still add a Stop Loss and Take Profit to your open positions.

Stop Loss and Take Profit Setting Rules

  • Long orders: Take profit trigger price ≥ the latest price, stop loss trigger price ≤ the latest price
  • Short orders: Take profit trigger price ≤ the latest price, stop loss trigger price ≥ the latest price

Attention:

  • The stop loss trigger price should not be too close to the liquidation price, otherwise, it may not be filled.
  • When using the stop-limit order, it is recommended that the gap between the trigger price and the order price, otherwise the order may not be filled after the trigger.
  • After closing a position, the stop-limit order will be automatically canceled.

Several states of stop-limit orders

1. To be triggered: refers to the market price has not yet fluctuated to the order trigger price, the order has not yet triggered, the order remains in the open orders.

2.Canceled

  • The user has clicked on the cancel button before the trigger.
  • If the position has been closed before the trigger, the stop-limit order will be automatically canceled by the system.
  • At the same time set the stop-loss and take-profit, when the take-profit order (stop-loss order) is triggered, the corresponding stop-loss order (take-profit order) will be automatically canceled by the system.

3. Triggered.

Risk Warning:

Cryptocurrency investment is innovative blockchain products, and subject to price fluctuation. Please judge your risk-taking ability rationally and make your investments with caution.

BitWell is not responsible for any direct, indirect or consequential losses as a result of the cryptocurrency trading and holding.

BitWell Team



BitWell is committed to building a fair and transparent global digital asset trading platform, providing investors with secure, convenient and intelligent blockchain derivatives trading services.

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