IBITTERS,
Stop-Loss/Take-Profit Orders:
Users can set trigger and order prices in advance. When the market price hits the trigger price, the system automatically places an order based on the user's settings. For one-way orders, only one condition (either stop-loss or take-profit) is set, while two-way orders allow for both, canceling the other once one is triggered. These orders reserve the necessary assets in advance.
- Market Orders: Execute immediately at the best available price.
- Limit Orders: Enter the order book at the specified price and wait to be filled, but they may not always execute depending on market conditions.
Example 1: Buy Stop-Loss/Take-Profit
- Limit Buy Order: 1 BTC at 60,000 USDT
- Take-Profit Trigger: 70,000 USDT, Order Price: 70,500 USDT
- Stop-Loss Trigger: 50,000 USDT
If the price reaches 60,000 USDT, the limit order fills, activating the stop-loss/take-profit order:
- Scenario 1: Price rises to 70,000 USDT, triggering a limit sell order at 70,500 USDT. Stop-loss order is canceled.
- Scenario 2: Price drops to 50,000 USDT, triggering a market sell order.
Example 2: Sell Stop-Loss/Take-Profit
- Limit Sell Order: 1 BTC at 60,000 USDT
- Take-Profit Trigger: 50,000 USDT, Order Price: 49,500 USDT
- Stop-Loss Trigger: 70,000 USDT
If the price reaches 60,000 USDT, the limit order fills, activating the stop-loss/take-profit order:
- Scenario 1: Price drops to 50,000 USDT, triggering a limit buy order at 49,500 USDT. Stop-loss order is canceled.
- Scenario 2: Price rises to 70,000 USDT, triggering a market buy order.
Notes:
- Placing stop-loss/take-profit orders reserves assets even before they trigger.
- For limit buy orders with attached sell stop-loss/take-profit orders, the take-profit trigger must be higher than the limit price, and the stop-loss trigger must be lower.
- For limit sell orders with attached buy stop-loss/take-profit orders, the take-profit trigger must be lower than the limit price, and the stop-loss trigger must be higher.
- If the limit order fills but the amount does not meet the minimum required for the stop-loss/take-profit, the order may not execute.
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