Take Profit (TP) and Stop Loss (SL) are conditional orders that help you automatically lock in profits or limit losses without continuously monitoring the market.
When the market price reaches the trigger price you have set, the system will automatically place an order using one of the following order types:
- Market Order: The order is executed immediately at the best available market price. This provides faster execution, but the final execution price may differ from the trigger price due to slippage, especially during periods of high market volatility or low liquidity.
- Limit Order: The order will only be executed at your specified price or a better price. This helps reduce the risk of unfavorable slippage. However, if the market moves too quickly beyond your limit price, the order may not be executed or may only be partially filled.
When setting up a Take Profit or Stop Loss order, you can choose which order type to use.