What is Take Profit (TP) and Stop Loss (SL) on BitTap? How to Use Them?

In financial and cryptocurrency trading, Take Profit (TP) and Stop Loss (SL) orders are risk management tools that help traders automatically buy or sell assets when the market price reaches a specific target. By using TP and SL, traders can automatically lock in profits or minimize losses when the market hits their set target.

Take Profit (TP)

Take Profit (TP) is an order that automatically sells an asset when the market price reaches a target price, securing profits that have already been made. TP orders are primarily designed to help traders lock in gains during market upswings without having to constantly monitor the price.

Usage Scenario

1. After buying a cryptocurrency, you want to sell it when the price rises to a certain level to lock in profits.
2. It is ideal for traders who want to avoid missing profit opportunities.

Features

1. Automatic Sell: When the market price reaches the TP level, the system automatically executes a sell order.
2. Locks in Profit: Setting a TP ensures that profits are secured once the target price is reached, preventing potential market pullbacks.

Stop Loss (SL)

Stop Loss (SL) is an order that automatically sells an asset when the market price falls to a set level to minimize potential losses. SL is particularly important during market volatility as it helps traders avoid significant losses.

Usage Scenario

• After buying a cryptocurrency, if you’re worried the price might drop, you can set a sell order at a lower price to limit losses.
• It’s ideal for traders looking to limit potential losses.

Features

1. Automatic Sell: When the market price drops below the set SL level, the system automatically executes a sell order.
2. Limits Losses: By setting a SL, traders can prevent large losses if the market price drops sharply.

How to Set Take Profit and Stop Loss Orders?

On BitTap, you can set Take Profit (TP) and Stop Loss (SL) orders to ensure automatic execution when the market reaches your set targets. Here’s how you can use them:

1. Setting a Take Profit (TP) Order

Steps:

1. Log in to your BitTap account and go to the trading page.
2. Choose the cryptocurrency pair you wish to trade.
3. Click on the “Limit Order” or “Take Profit/Stop Loss” option and select “Take Profit.”
4. Enter the target price at which you want to take profit (usually higher than the current market price).
5. Once the price reaches the target, the system will automatically sell your assets, securing your profit.

Example: If you buy 1 BTC for 30,000 USDT and want to sell when the price reaches 35,000 USDT, set the TP at 35,000 USDT. When the market hits this price, the system will automatically sell your BTC, securing your profit.

2. Setting a Stop Loss (SL) Order

Steps:

1. Log in to your BitTap account and go to the trading page.
2. Choose the cryptocurrency pair you wish to trade.
3. Click on the “Limit Order” or “Take Profit/Stop Loss” option and select “Stop Loss.”
4. Enter the target price for the SL (usually lower than the current market price).
5. Once the price drops to the target level, the system will automatically sell your assets, limiting your loss.

Example: If you buy 1 BTC at 30,000 USDT but are concerned about a price drop, you can set the SL at 28,000 USDT. When the price drops to this level, the system will automatically sell your BTC, helping to minimize potential losses.

How TP and SL Work

For example, if the current market price is 30,000 USDT, the TP can be set at 35,000 USDT, and the SL can be set at 28,000 USDT. When the price moves to either of these levels, the TP or SL order will be triggered, and a limit order will be placed according to the pre-set target price.

Notes

• For both buy and sell TP/SL orders, the order price can be higher or lower than the trigger price. Once the trigger price is reached, the limit order will be activated, but it will only execute if market conditions allow.
• Reaching the trigger price does not guarantee immediate execution; the limit order will only execute once market conditions meet the order.

By setting TP and SL orders, you can automate trades, securing profits while effectively managing risk.