In the fast-paced world of digital asset trading, automated strategy orders are essential tools for managing risk, locking in profits, and capitalizing on market trends—without requiring constant screen monitoring. This guide dives deep into three core types of strategy orders: Stop-Loss/Take-Profit Orders, Trailing Stop-Loss Orders, and Plan Orders. Whether you're a beginner or an experienced trader, mastering these tools can significantly enhance your trading efficiency and decision-making.
Stop-Loss and Take-Profit Orders
What Are Stop-Loss and Take-Profit Orders?
Stop-loss and take-profit orders are conditional instructions that allow traders to automatically execute trades when the market reaches a specified price. These orders help manage risk and secure gains without manual intervention.
You can set both a trigger price (the market price that activates the order) and a limit price (the price at which the order is placed). Once the market hits the trigger price, the system automatically submits the order at your predefined limit price—or as a market order for immediate execution.
These orders are widely used for:
- Closing positions to lock in profits (take-profit)
- Limiting losses when the market moves against your position (stop-loss)
- Entering new positions during strong trend movements (trend-based entries)
Importantly:
- For single-direction positions and closing orders in dual-position mode, no margin or position is frozen.
- For opening orders in dual-position mode, margin will be reserved.
You can also place dual take-profit/stop-loss orders, where one side cancels automatically when the other is triggered—ideal for securing outcomes in volatile markets.
👉 Discover how automated trading strategies can protect your investments
Placing Stop-Loss/Take-Profit with Initial Orders
When placing a limit, advanced limit, or market order, you can pre-configure take-profit and stop-loss conditions for the resulting position. Once the initial order fully fills, the system automatically submits your predefined stop-loss or take-profit order.
Note: These conditional orders appear under "Current Orders – Take-Profit/Stop-Loss". You can cancel them anytime before they are triggered.
Managing Stop-Loss/Take-Profit from Position Interface
Fixed-Quantity vs. Full-Position Orders
There are two ways to attach stop-loss/take-profit orders to existing positions:
Fixed-Quantity Orders
- Applies to a specific amount within your position.
- Quantity remains unchanged even if you later add or reduce your position.
- Supports multiple active orders.
- You can choose between limit or market execution.
Full-Position Orders
- Automatically adjusts quantity based on current position size (e.g., after adding or reducing).
- Only one such order is allowed per side.
- Default execution is market order for faster response.
- If both take-profit and stop-loss are set, triggering one cancels the other.
How to Use Full-Position Stop-Loss/Take-Profit
- Set Up: Go to your position → Select “Full Position” → Enter trigger price → Confirm
- Modify: Tap the stop-loss/take-profit button → Delete existing → Create new
Practical Examples
Let’s explore real-world scenarios:
Case 1: Long Position Stop-Loss
Hold BTC long at $9,000 avg. price. Set stop-loss at:
- Trigger: $8,000
- Order Price: $7,950 (or market)
When price hits $8,000, it triggers a sell to limit downside.
Case 2: Short Position Stop-Loss
Short BTC at $9,000. Market rises—set stop-loss:
- Trigger: $10,000
- Order Price: $10,050 (or market)
Automatically buys back to cap losses.
Case 3 & 4: Dual Take-Profit/Stop-Loss (Long & Short)
Set both upward take-profit and downward stop-loss (or vice versa). One triggers, the other cancels—perfect for range-bound volatility.
Case 5 & 6: Trend-Following Entry
Use stop-loss logic to enter trends:
- Buy if BTC breaks above $12,000 (bullish breakout)
- Sell short if BTC drops below $6,000 (bearish breakdown)
These are not just exit tools—they’re strategic entry mechanisms too.
Key Rules Summary
- Trigger price types: latest price, mark price, index price
- No margin freeze for most closing orders
- Market conditions may prevent execution
- Limit orders follow standard matching rules
- Large positions may be split into smaller ones upon trigger
Trailing Stop-Loss Orders
What Is a Trailing Stop-Loss?
A trailing stop-loss dynamically follows price movement, adjusting the trigger level as the market moves favorably. It helps lock in profits during strong trends while protecting against sudden reversals.
Unlike fixed stop-loss orders, this strategy adapts in real time. It only triggers when price reverses by a defined percentage or amount—known as the callback rate.
You can also set an activation price—the threshold at which the trailing mechanism begins tracking.
Key Terms Explained
- Callback Rate: The reversal threshold (e.g., 5% drop from peak).
- Quantity: Amount to trade upon trigger.
- Activation Price: Optional starting point for tracking.
Activation Logic:
- If activation price = current price → activates immediately
- If higher than current → activates when market rises to it
- If lower than current → activates when market falls to it
Trigger Conditions:
- Buy: Market ≥ Trigger Price
- Sell: Market ≤ Trigger Price
Where: - Buy Trigger = Lowest Price × (1 + Callback Rate)
- Sell Trigger = Highest Price × (1 – Callback Rate)
Real-World Examples
Example 1: Catching a Top During a Rally
BTC at $30,000. No activation set. You choose:
- Callback: $2,000
If BTC climbs to $40,000 then drops to $38,000 ($40k – $2k), it triggers a market sell—locking in gains before a deeper fall.
Example 2: Buying the Dip After a Crash
BTC at $40,000. You expect a drop and rebound:
- Callback: 5%
- Activation Price: $30,000
Once BTC hits $30k, tracking starts. If it drops further to $20k then rebounds to $21k ($20k × 1.05), it triggers a buy—capturing the bounce.
👉 See how dynamic trailing stops can boost your profit-taking precision
Important Notes
- No margin freeze before activation
- Execution depends on market conditions
- Unfilled market orders appear in "Current Orders"
- Order size limits vary by contract
- If balance is insufficient, system adjusts order size accordingly
Plan Orders
What Are Plan Orders?
Plan orders function similarly to stop-loss/take-profit orders but with one key difference: they never freeze margin or position, making them ideal for risk-sensitive strategies.
Like other conditional orders, you define:
- A trigger price
- An execution price (limit or market)
When the market reaches your trigger, the system places the order—perfect for entries, exits, or hedging.
Setting Up Plan Orders
The setup process mirrors stop-loss/take-profit workflows:
- Define direction (buy/sell)
- Choose trigger type (last price, mark price, etc.)
- Set order type (limit/market)
- Confirm quantity
All examples from earlier (trend entries, profit-taking) apply here—with added flexibility due to no margin lockup.
Critical Considerations
- No margin frozen at any stage
- May fail due to insufficient funds, system errors, or paused contracts
- Triggered orders behave like regular limit/market trades
- If limit price violates exchange rules, system uses max allowable price
- Size limits vary by asset and market conditions
- On execution, system adjusts order size if balance is inadequate
Frequently Asked Questions (FAQ)
Q: What’s the difference between stop-loss and plan orders?
A: The main difference is margin handling. Stop-loss may freeze margin in certain dual-position scenarios; plan orders never do.
Q: Can I use trailing stops for opening positions?
A: Yes. Set an activation price and callback to enter during pullbacks or breakouts.
Q: Do these orders work after logging out?
A: Yes. All strategy orders run on the server side—even if you’re offline.
Q: Why didn’t my order execute even after trigger?
A: Possible reasons include insufficient margin, position limits, paused trading, or network issues.
Q: Can I modify an active trailing stop?
A: No. You must cancel and re-create it with new parameters.
Q: Are there fees for unexecuted orders?
A: No. Fees apply only upon successful trade execution.
👉 Start using smart order types to automate your trading strategy today
By leveraging stop-loss/take-profit, trailing stops, and plan orders effectively, traders gain powerful tools to navigate volatile markets with confidence. Whether protecting capital or capturing trends, automation reduces emotional decisions and enhances precision. With proper setup and understanding, these strategies become indispensable components of modern digital asset trading.