How to set Stop-Loss and Take-Profit on WhiteBIT?

What are Take-Profit (TP) and Stop-Loss (SL)?

Take-Profit (TP) is the price level at which a trader wants to close the current position in order to lock in profit. When the price reaches the Take-Profit level set by the trader, the order to close the position is automatically executed and the position is closed at the market price.

On the other hand, Stop-Loss (SL) is the price level at which the trader wants to close the current position to limit the loss. When the price reaches the Stop-Loss level set by the trader, the close order is also automatically executed and the position is closed at the market or set price.

Take-Profit (TP) and Stop-Loss (SL) are some of the basic tools used to effectively manage risk, control emotions and adhere to trading strategies.

In this article, we will take a detailed look at what Take-Profit (TP) and Stop-Loss (SL) are, how they work on WhiteBIT, and why they are important tools for any trader looking to trade effectively in the digital asset market.

Learn more about Take-Profit (TP)

Take-Profit (TP) is a predetermined price level at which a trader intends to close a position for profit.

As a rule, the TP level is set above the entry price for long positions and below the entry price for short positions. Once the market reaches the set level, the position is automatically closed and the trader locks in his profit.

For example:

A user opened a Long position for 1 ETH at a price of 2000 USDT:
He decided to use a fixed profit strategy and set the Take-Profit target level to 15%.
In this case, he should set the TP at 2300 USDT. If the price of ETH starts to rise and reaches the 2300 USDT level, then a sell order for ETH will be set and executed automatically at the market price.
If the target level is reached, the order will be executed and the user will receive a profit of 15% of the initial buy price, which is equal to: 2000 USDT * 0.15 = 300 USDT.

How do Take-Profit (TP) and Stop-Loss (SL) work on WhiteBIT?

On WhiteBIT, you can set TP and SL when placing a new Buy or Sell order, before opening a Long or Short position, or when adding funds to an order or position. TP and SL can be used individually or in combination.

In a technical context, Take-Profit and Stop-Loss work as a Stop-Market order, but without specifying an asset quantity. This means that when the TP or SL level is reached, the exchange will automatically close the entire position at the market price.

The TP/SL function on WhiteBIT allows for more efficient risk management due to the simultaneous placement of multiple TP/SL orders. With this functionality you can adjust TP/SL while placing a limit, market or Stop-limit/Stop-Market order directly in the order settings area.

There are two options for placing TP/SL orders:

For the whole position: when you set TP/SL for an already opened position, it means that Take Profit and Stop Loss levels are applied to the whole volume of your trade. You can set a single TP/SL order for the entire trade. When the price reaches your predetermined TP/SL level, your entire position is automatically closed at the current market price.
For a part of a position: when you open a position or add funds to a position, you can set a TP/SL for that amount of your trade, which means that you can build multiple TP/SL levels for different parts of your trade. When one of the TP/SL levels is reached, the corresponding amount will be automatically closed at the current market price and the other TP/SL levels will continue to apply.

To get a deeper understanding of how these orders function, we suggest you study the following practical example.

Let's assume that the current market price of BTC is 25,000 USDT. The trader opens a long position for 1 BTC (using two separate orders) and simultaneously creates several TP/SL orders:

Order A

TP trigger price: 26,000 USDT.
Quantity: 0.5 BTC

Order B

TP Trigger Price: 30,000 USDT.
Quantity: 0.5 BTC

After executing 2 orders, the total position volume will be equal to 1 BTC, but since these orders were placed separately, individual TP orders will be set for them. Thus, when placing a position (or adding funds to a position), you can set TP/SL for this position volume, thereby creating TP/SL for the necessary parts of the position at the desired price levels.

After opening a position, it is impossible to set TP/SL for part of its volume, so the trader can only set TP/SL for the entire amount:

SL order

SL trigger price: 23,000 USDT
Quantity: 1 BTC

Please note: if you want to partially close an already active position, you can click on the “Limit” button, set the closing price of the position and the desired amount. But remember that closing a position in this way can only work as a TP order. If you try to partially close a position with a limit order as an SL order, your position will be closed according to the market order principle.

Under market conditions, the TP/SL function will work as follows:

When the market price of BTC reaches 26,000 USDT, TP order A is triggered and closes part of the position at 0.5 BTC at the market price. The trader retains a position of 0.5 BTC (while TP/SL orders B and C remain active).
By clicking on the “Limit” button, the trader sets the closing price for part of the position at 0.1 BTC at a price of 27,000 USDT. After reaching this price (and, accordingly, closing part of the position at 0.1 BTC), the total position volume is already 0.4 BTC, while TP/SL orders B and C are still active.
When the market price of BTC reaches 30,000 USDT, TP order B is triggered. Although the amount of this TP order B exceeds the amount of the current position, it will be closed completely without opening an opposite position. Also, SL order C is automatically canceled.

Why to use TP and SL?

Risk Management

TP and SL help limit potential losses and gains. If you set a predetermined exit point (SL), you can control the maximum amount you are willing to lose from a trade. TP orders, on the other hand, allow you to lock in profits when the market reaches a desired level and take advantage of favourable market movements.

Eliminate emotional bias and maintain trading discipline

The market is all about emotions. Trading can often be difficult and emotions can cloud judgement when it comes to changing strategy. TP and SL orders help eliminate emotional bias by automating your exit strategy. By placing orders prematurely, you can avoid the temptation to deviate from your plan due to fear or other emotional factors. TP and SL help to maintain trading discipline and execution of the trading plan, which is the foundation of stable trading in the market.

Time Management

TP and SL save time because with them, you don't have to constantly monitor the market. Once orders are set, you can focus on other aspects of your trading strategy.

Support

In case of any questions related to the functionality of our exchange, you can:

Leave a request on our website;
Write to the support email: support@whitebit.com;
Write to the chat using the button in the lower right corner of the screen (in the upper right corner of the WhiteBIT app, click ).