Newbies Must Read 03: Take Profit & Stop Loss to Control Risks

KuCoin Futures supports both Take Profit and Stop Loss, and users can set or adjust "Take Profit/Stop Loss" before placing orders or when holding positions.  

 

How to Close Positions to Take Profit or Stop Loss 

1.1 Set Take Profit & Stop Loss before placing orders  

You can set Take Profit and Stop Loss for limit or market orders in the order-placing panel to be free from monitoring the price changes.   

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1.2 Set Take Profit & Stop Loss when holding positions  

Users can also set or adjust Take Profit and Stop Loss at the position page. 

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The above screenshots show the ways to set or adjust Take Profit and Stop Loss. Please take note of the following terms: "Take Profit", "Stop Loss", "Stop Price", "Profit Rate", "Loss Rate", etc., and we will explain these terms and demonstrate the usage and differences of Take Profit and Stop Loss in below.

 

2. Strategies on Using Take Profit & Stop Loss

 

2.1 Take Profit  

Take Profit is a feature that allows the profit to be fixed to a certain amount when the price reaches a certain point when facing market fluctuations.  

 

What is Profit Rate?  

Profit Rate = Profits/Position Margin. The gradient of profit rate ranges from 25% to 200%. You can choose different gradients, and the system will auto-fill the corresponding take profit price, or you can enter it by yourself.    

 

How to Set Take Profit?  

There are 3 ways:  

1) Before opening the positions, you can set the Take Profit price when placing orders, which is the most convenient and effective way.  

 

2) When holding positions, you can click "Take Profit and Stop Loss" in the panel of the positions to set the Take Profit price.  

 

These 2 ways ensure your positions will be closed at the Take Profit price. If you want to close part of the positions at the Take Profit price, you can choose the 3rd way as below.  

 

How to Close Positions Partially at Take Profit Price?  

3) You can set a stop order opposite to the order to be executed, that is to set the "Stop Price", "Price" and "Quantity" in the panel of "Stop".  
 

When the last price reaches the stop price, the order will be triggered and the system will place the order at your preset "Price"; when the specified quantity is smaller than the position size, the order will be partially closed; when the specified quantity equals the size of lots in your position, the order will be fully closed.

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Note: There are 3 types of price that can trigger the stop order: last price, mark price and index price. If you choose to use mark price for your stop price (you can also edit the mark price), when the mark price reaches the stop one, the stop order will be placed at the order price (filled in the "Price" box).  

 

2.2 Stop Loss  

What is Stop Loss?   

Stop Loss is a risk management tool to limit your losses within a specified amount and to prevent liquidation.   

 

What is Loss Rate?  

Loss Rate = Profits/Position Margin. The gradient of loss rate ranges from 5% to 75%, you can choose different gradients and the system will auto-fill the corresponding stop loss price, or you can enter it by yourself.    

 

How to Set Stop Loss?   

Similarly, there are 3 ways:  

1) Before opening the positions, you can set the stop loss price when placing orders, which is the most convenient and effective way.  

 

2) When holding positions, you can click "Take Profit & Stop Loss" in the panel of positions to set the stop loss price.  

 

These 2 ways ensure your positions will be closed at the Stop Loss price. If you want to close part of the positions at the stop loss price, you can choose the 3rd way as below.   

 

How to Close Positions Partially at Stop Loss Price?  

3) You can set a stop order opposite to the order to be executed, that is to set the "Stop Price", "Price" and "Quantity" in the panel of "Stop".  

 

When the last price reaches the stop one, the order will be triggered and the system will place the order at your preset "Price"; when the specified quantity is smaller than the position size, the order will be partially closed; when the specified quantity equals the size of lots in your position, the order will be fully closed.  blobid9.png

 

Why Can't I Find the "Take Profit & Stop Loss" Option?

The option of "Take Profit & Stop Loss" is currently only offered in the Pro version of KuCoin Futures. If you’re using the Lite version, you can click “Pro” or “Futures Pro” to switch to the professional version to set the take profit and stop loss price.

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*How to Claim?   

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3 Steps to Start Futures Trading  

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Tutorials:  

Web  

APP  

  

Thank you for your support!  

KuCoin Futures Team  

  

Risk Warning: Please pay attention to the risk control of Futures trading. It is recommended that newbies control the leverage within 5x.  

 

 

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