A Stop Loss Order is an order that does not enter the order book until the market reaches a Trigger Price. Traders use this type of order for two main strategies:
First, as a risk-management tool to limit losses on existing positions, and second, as an automatic tool to enter the market at the desired entry point without manually waiting for the market to place the order.
MoonXBT has three types of Stop Orders:
Stop Market Order - The system places a Market Order when the market reaches the Trigger Price.
Stop Limit Order - The system places a Limit Order when the market reaches the Trigger Price.
Trailing Stop Order - A set Trailing Value triggers a Market Order if the price reverts by an amount equal to the Trailing Value. A positive Trail Value indicates a trailing Buy, while a negative Trail Value indicates a trailing Sell.
For all Stop Orders, traders can specify the Trigger Price as either the Last Price, Mark Price, or the underlying Index Price. Traders can select Stop Orders in the Dropdown list by clicking on the three vertical dots, showing the Stop Price, Triggering Price, and Status. The trading interface displays three distinct Status events while executing a Stop Order.
Take Profit Orders
A Take Profit Order is somewhat similar to a Stop Order, but they execute when the price moves in a favorable direction instead of when the price moves against the position. Traders primarily use Take Profit orders rather than Limit orders to increase the chances of closing out a position or “taking a profit”. They do this by specifying a Market or Limit order instruction to execute once the market reaches the predefined Trigger Price.
Take Profit Market Order - The system places a Market Order when the market reaches the Trigger Price.
Take Profit Limit Order - the system places a Limit Order when the market reaches the Trigger Price.
For all Take Profit Orders, traders can specify the Trigger Price as either the Last Price, Mark Price, or the underlying Index Price.