Using OCO Stop-Loss and Take-Profit Orders for Futures Positions
Summary
The document explains how conditional stop-loss and take-profit orders work for futures positions on Kraken Pro. A stop loss is intended to close a position if the market moves adversely through a chosen level; a take-profit order closes it at a specified favorable price. When both are attached to an open position, they operate as one-cancels-other orders: execution of one cancels the other. The page also describes setting these levels when placing a futures order and modifying or cancelling them while the position remains open.
It highlights the relationship between stop placement and liquidation: a stop set before the liquidation price can provide a planned exit and may avoid the exchange’s liquidation fee. These orders automate exits but do not guarantee a particular execution price or eliminate trading risk, and the document provides no performance evidence or order-execution details. Its practical focus is platform order handling and basic risk control, rather than a trading strategy or method for selecting stop and target levels.
Key ideas
- A stop-loss order can close a futures position after price crosses a user-set adverse level.
- A take-profit order can close a position after price reaches a chosen favorable level.
- Attaching both orders creates OCO behavior, so filling one cancels the other.
- The orders activate after the position opens and can be changed or cancelled while it remains open.
- Placing a stop before liquidation may provide a planned exit and avoid a liquidation fee, but does not remove trading risk.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.