How Take-Profit and Stop-Loss Orders Trigger and Fill

Summary

This documentation explains take-profit and stop-loss orders on a perpetual futures venue. The mark price triggers these orders. Traders can choose market execution, which has a stated 10% slippage tolerance, or set a limit price: a more aggressive limit improves the chance of filling after a trigger while allowing more slippage. Its example shows how a stop limit at the trigger price may remain unfilled after a sudden price gap, while a lower limit may be more likely to execute at a worse price.

Orders created from an open position default to closing its full size; a manually specified size stays fixed if the position later changes. Orders attached to a parent entry order have separate behavior: children wait until the parent fills, and ordinary cancellation of an unfilled or partly filled parent also cancels them. The documentation describes an exception when partial fills are followed by cancellation for insufficient margin, which can place the child orders as if the parent had fully filled. These mechanics are venue-specific, and triggered limit orders are not guaranteed to fill.

Key ideas

• The mark price triggers take-profit and stop-loss orders.
• Market orders use a stated 10% slippage tolerance, while limit prices trade off fill likelihood against slippage.
• A stop limit can remain unfilled when price gaps past its limit.
• Position-linked orders default to the full position, while configured sizes remain fixed.
• Parent-linked child orders depend on how the entry order fills or is canceled.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.