OKEx Jumpstart #10 — HyperDAO
Tutorial on Take Profit & Stop Loss Calculation
Introducing trigger order:
Trigger order is a pre-set order that will only be triggered under specific conditions. Once the latest traded price has reached the “trigger”, the pre-set order will be executed.
By using trigger order, we can take profits and stop losses for open positions without much efforts.
In your open contracts, options of “Sell to close” and “Buy to close” are available under “trigger order”.
Let’s say you want to short sell the BTC weekly contract from the price 15,050 and buy back at 15,000 to take profit, you may create the trigger order as shown below. Enter 15,001 in the trigger price and 15,000 in the order price, click “Buy to close” to place order. Once the price drops to 15,001, your trigger order will be posted to the order book. The order will be filled if it drops further to 15,000.
On the contrary, if you want to set a stop loss order for your open short position, you will have to set a trigger price higher than the market price, in order to close the position at the order price to stop loss.