TP/SL orders in spot trading: how they work

LiquidatedNotStirred · 2025-11-22T03:03:43+00:00

Understanding the difference between Take-Profit (TP) and Stop-Loss (SL) orders is essential for risk management in spot trading. TP/SL orders block assets immediately but execute only when trigger prices are met, unlike conditional orders. Limit orders may not be filled if price levels aren't reached, while market orders execute at the best available price.

LiquidatedNotStirred

2025-11-22 03:03:43

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If you are trading on the spot market, you need to understand the difference between Take-Profit and Stop-Loss orders. These are the two most important tools for risk management.

How does it work?

When you place a TP/SL order, the assets are immediately locked. However, the order will only trigger when the price reaches the trigger price you set.

For sale:

Trigger: 19 000 USDT
Order is executed at market price

For purchase:

Trigger: 21,000 USDT
Limit: 20,000 USDT
The order is waiting in the order book

TP/SL against conditional orders

There is a significant difference: with a conditional order, assets are NOT blocked until triggered. With TP/SL – they are blocked immediately.

Most Important

Limit orders may not be executed if the price does not reach the desired level. Market orders are executed immediately at the best available price.

Do you have questions? Check the spot trading section on the platform.

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