In the fast-paced world of futures trading, emotional decision-making can lead to costly mistakes. That’s where stop-loss and take-profit conditional orders come in—automated tools that help traders protect capital, lock in profits, and maintain discipline. Whether you're managing risk or aiming to maximize returns, understanding how to set up and optimize these orders is essential for long-term success.
This comprehensive guide walks you through everything you need to know about stop-loss and take-profit conditional orders—from setup and customization to advanced strategies that align with market dynamics.
How to Create a Stop-Loss and Take-Profit Conditional Order
To begin leveraging automated risk management, you first need to access the conditional order interface. Here are the most common ways to get started:
Accessing the Conditional Order Page
- Method 1: Navigate to the trading page and click on Smart Conditional Orders or My Conditional Orders, then select Create New Order.
- Method 2: From the trading page, go to Place Trade or Funds & Positions, open your active position, and tap the Smart Conditional Order button.
- Method 3: On the product quote page, tap More > Smart Conditional Orders to enter the creation interface.
- Method 4: Enter the express trading page via Place Trade or Live/Simulated Trading, then click the shield icon in the top-right corner to set stop-loss and take-profit conditions during entry.
💡 Note: When setting a stop-loss on entry, the default execution price is market price. However, you can manually adjust this by clicking "Set" to customize your stop-loss or take-profit trigger prices.
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Step-by-Step: Configuring Trigger Conditions and Order Settings
Creating an effective conditional order involves two core components: trigger conditions (when the order activates) and order settings (how it executes).
(1) Understanding Trigger Conditions
The trigger condition determines when your order will be activated based on market price movement.
✅ Trigger Price
This is the specific price level you define. For example:
- If holding a long position, set a lower trigger price for stop-loss (to exit if price drops).
- Set a higher trigger price for take-profit (to close when price rises).
✅ Trigger Spread (Price Difference)
Instead of setting absolute prices, use the spread from your cost basis. The system automatically calculates trigger levels based on your entry price plus or minus a defined number of points.
🔄 Pro Tip: You can predefine default spreads in your live trading settings. Once saved, these values auto-fill when creating new orders—saving time and ensuring consistency across trades.
Three Setup Options:
- Stop-Loss Only: Automatically closes your position if the market moves against you.
- Take-Profit Only: Secures gains once your target price is reached.
- Both Stop-Loss & Take-Profit: The first condition triggered cancels the other—ideal for disciplined exits regardless of direction.
(2) Customizing Order Execution Settings
Once triggered, your order needs clear instructions on how to execute.
🔹 Order Price Types
You can choose from several pricing modes:
- Latest Price: Reference point based on last traded price.
- Market Price: Executes at best available rate—fastest but may have slippage.
- Counterparty Price (Ask/Bid): Matches current best offer (sell side for buy orders).
- Queue Price: Next unexecuted bid in the order book—lower priority but tighter control.
- Premium Price: Adds a small increment (e.g., +1 tick) over counterparty price to improve fill speed.
- Custom Price: Set your own exact price—ideal for precision, but may not fill if market moves away.
⚠️ Warning: Custom prices too far from market value may fail to execute during volatile periods.
🔹 Order Quantity
Ensure your requested quantity does not exceed available position size. Over-limit entries will be rejected.
🔹 Expiry Settings
Choose how long your conditional order remains active:
- Same day
- 5 days
- 10 days
- Indefinitely (until triggered or canceled)
You can also set a custom expiration date based on your trading timeline.
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Managing Active Conditional Orders
After creation, monitor and manage your orders under the Smart Conditional Orders > My Orders section.
Key Actions:
- Pause: Temporarily disable monitoring without deleting. Resume anytime with one click.
- Modify: Adjust trigger levels, prices, or quantities mid-trade. Click “Edit,” make changes, and confirm.
- Delete: Remove unwanted orders permanently. Confirm deletion in the pop-up prompt.
These controls give you full flexibility—responding dynamically to changing market conditions without manual intervention.
Advanced Strategies for Stop-Loss and Take-Profit Orders
Setting basic triggers is just the beginning. To truly optimize performance, adopt strategic frameworks tailored to market context.
Stop-Loss Strategy Guide
(1) Where to Place Your Stop-Loss
- Support Levels: Exit if price breaks below key historical support zones.
- Retracement Thresholds: Limit drawdowns to no more than 5% of entry value.
- Risk-Based Stops: Calculate stop levels based on maximum acceptable loss per trade.
(2) Choosing Between Two Core Strategies
🔹 Direction-Based Stop-Loss
Use when uncertain about market direction but confident in timing. Keep stops tight to minimize losses during sideways or reversal patterns.
Example: In a consolidation phase, a narrow stop helps avoid being caught in false breakouts.
🔹 Timing-Based Stop-Loss
Apply when confident in trend direction but unsure of short-term volatility. Wider stops prevent early exits due to normal price noise.
Example: Entering early in a strong uptrend? Allow room for pullbacks before triggering a stop.
💬 Insight: Adjust stop width based on market phase—tighten during uncertain trends, widen during confirmed momentum runs.
Take-Profit Strategy Guide
Knowing when to exit with profit is as crucial as knowing when to cut losses.
Optimal Take-Profit Scenarios:
- Negative Policy Shifts: If major regulatory or macroeconomic news threatens bullish sentiment, secure profits early.
- Market Divergence: When broader markets rally but your asset shows weakness or stagnation, consider exiting.
- Late-Stage Rally Signs: If most contracts are up but leading ones start declining, it may signal topping out.
- Historical Highs + Premium Valuation: Prices significantly above spot value indicate potential overextension—time to cash out.
- Technical Overextension: When price moves far above the 60-day moving average, a pullback becomes likely—lock in gains proactively.
Frequently Asked Questions (FAQ)
Q: Can I set both stop-loss and take-profit at the same time?
A: Yes. When either condition is met, the position closes and the other condition is automatically canceled.
Q: What happens if my custom price isn’t reached after triggering?
A: The order may not execute if market moves quickly. For faster fills, consider using market or premium pricing post-trigger.
Q: Do conditional orders work during weekends or holidays?
A: Yes, as long as the market is live and data feeds are active, your orders remain monitored.
Q: How do I avoid frequent false triggers in volatile markets?
A: Use wider spreads or time-based filters. Also, favor timing-based stops in high-volatility environments.
Q: Can I use conditional orders in simulated trading?
A: Absolutely. Test your strategies risk-free in demo mode before going live.
Q: Are there fees for using stop-loss or take-profit orders?
A: No additional fees—execution costs depend only on standard trading fees when the order fills.
👉 Start practicing with conditional orders in a risk-free environment
By mastering stop-loss and take-profit conditional orders, you gain a powerful edge: removing emotion, enforcing discipline, and protecting hard-earned gains. Whether you're a beginner or experienced trader, integrating these tools into your routine enhances consistency and confidence.
With precise triggers, smart execution options, and adaptable strategies, automated orders aren’t just convenience—they’re a cornerstone of modern trading success.