Stop-Loss / Take-Profit Orders

What are Stop-Loss Orders?

In the context of crypto leverage trading, a stop loss order is an instruction given to an exchange to automatically sell an asset when it reaches a specified price level. This means that if the price of a leveraged asset falls to a certain point, the stop loss order will trigger and the asset will be sold, limiting the potential losses for the trader.

Stop-loss orders are a commonly used risk management tool in crypto leverage trading and can help traders manage risk by setting predetermined limits on potential losses.

What are Take-Profit Orders?

Take-profit orders are another commonly used tool in crypto leverage trading.

Similar to stop-loss orders, a take-profit orders automatically sell an asset when it reaches a specified price level, but in this case, it's to lock in profits rather than to limit losses. This means that if the price of a leveraged asset rises to a certain point, the take profit order will trigger and the asset will be sold, securing the profits for the trader.

How to Set Stop-Loss and Take-Profit Orders in Cadence

To set stop-loss and take-profit orders, click on the "Close" button and select the "Trigger" tab. Once you create a trigger order, it will appear in your position's row and also under the "Orders" tab.

If necessary, you can edit the order and adjust the trigger price. Keep in mind that if you manually close a position, any associated trigger orders will remain open. To prevent these orders from activating when opening future positions, you'll need to cancel them manually.

It is important to note that orders are not always guaranteed to be executed. There are various situations that can prevent the execution of an order, including but not limited to the following:

• The mark price, which is a composite of exchange prices, did not reach the specified price

• The specified price was reached, but it was not sustained long enough to execute the order

• No keeper accepted the order for execution

It is also worth noting that trigger orders are considered market orders and are not guaranteed to be executed at the trigger price.