1. Limit Take-Profit and Stop-Loss
Limit take-profit and stop-loss orders combine the take-profit/stop-loss trigger mechanism with the functionality of limit orders. Users can use this type of order to set their desired minimum profit or the maximum loss they are willing to tolerate in a trade. Once the limit take-profit or stop-loss order is triggered, the limit order will be automatically placed.
In a limit take-profit/stop-loss order, the stop-profit/stop-loss price is the trigger price of the limit order, and the limit price is the price point at which the order will be placed.
The limit price can be set manually—typically, the limit price for a buy (long) order is set above the take-profit/stop-loss price, while for a sell (short) order, it is set below the take-profit/stop-loss price. This difference is considered to account for the time gap between the take-profit/stop-loss trigger and the placement of the limit order, during which the market price may change.
2. Market Take-Profit and Stop-Loss
When a market take-profit or stop-loss order is triggered, it will immediately execute as a market order.
※ When the market experiences high volatility or sharp price movements, the final execution price of a market order may be higher or lower than the price seen by the user when placing the order. Therefore, it is recommended that users pay attention to market depth and price fluctuations before evaluating.
3. Limit/Market Take-Profit and Stop-Loss with OTOCO
The main order is A, and the associated orders are B and C.
If the main order A is filled, it triggers associated orders B and C. If associated order B is filled, it cancels associated order C. If associated order C is filled, it cancels associated order B.
This type of order structure is called OTOCO (One Cancels Other, One Cancels One), and orders B and C are OCO (One Cancels Other) orders.