Trailing stop order overview
A trailing stop order is a strategy that tracks market prices, allowing users to set orders at a specific percentage or price offset from the current market level. When the market reverses, the trailing stop order automatically triggers the preset order.
When the price moves in a favorable direction, a trailing stop order adjusts accordingly. As long as the price continues to move in the trader's favor, the trigger price follows, allowing users to lock in profits while letting gains run.
At the same time, if the price moves against the trader by a specified percentage, the trailing stop order allows users to preset a market order to reduce or close their position. This helps limit losses and protect profits in adverse conditions.
Note that a trailing stop order does not move in the opposite direction.
Trailing TP overview
A Trailing TP order operates on the same principle as a trailing stop order and is one of the flexible take-profit and stop-loss tools Gate offers to traders.
Trailing TP can only be set after a position is opened, via the "TP/SL" and "Trailing TP" option.
Notes:
- When using a Trailing TP to close a position, carefully set the activation price and pullback rate. Ensure that the Trailing TP order would close the position at a profit upon activation, so that it can lock in additional gains as the trigger price adjusts with subsequent market movements.
- For long positions, the Trailing TP order will submit a market sell order. The activation price must be higher than the position's entry price or the latest executed price. If no activation price is set, the order will be triggered automatically based on the latest executed price.
- For short positions, the Trailing TP order will submit a market buy order. The activation price must be lower than the position's entry price or the latest executed price. If no activation price is set, the order will be triggered automatically based on the latest executed price.
Key Features
- Pullback Rate Setting: Users can set a pullback as a percentage or a fixed price offset. When the market moves in a favorable direction, the trigger price trails accordingly. If the price reverses by the specified pullback, a market order is automatically executed.
- Loss Limitation: A trailing stop order can help protect profits and limit potential losses during sharp market reversals.
- Trend Capture: A trailing stop order enables traders to automatically capitalize on market rebounds or trend reversals without the need for constant manual intervention.
Example
Example 1: A user holds a long position of 1 BTC with an entry price of 50,000 USDT and expects a 5% pullback as the optimal exit point. The user sets a trailing order with an activation price of 52,000 USDT and a pullback of 5%. When the market price rises to 52,000 USDT and then pulls back 5% to 49,400 USDT, the system automatically executes a market order to close the position.
| Parameter | Setting |
|---|---|
| Position Side | Long (1 BTC) |
| Trailing Stop Order Activation Price | 52,000 USDT |
| Pullback Rate | 5% |
| Actual Trigger Price | 49,400 USDT |
| Close Type | Market Order |
Example 2: A user holds a short position of 1 BTC with an entry price of 50,000 USDT and expects a 5% rebound as the optimal exit point. The user sets a trailing stop order with an activation price of 48,000 USDT and a pullback rate of 5%. When the market price drops to 48,000 USDT and then rebounds 5% to 50,400 USDT, the system automatically executes a market order to close the position.
| Parameter | Setting |
|---|---|
| Position Side | Short (1 BTC) |
| Entry Price | 50,000 USDT |
| Trailing Stop Order Activation Price | 48,000 USDT |
| Pullback Rate | 5% |
| Actual Trigger Price | 50,400 USDT |
| Close Type | Market Order |
Notes
- Before a trailing stop order is triggered, it does not lock margin or occupy the position. Therefore, be careful to avoid having margin or positions tied up by limit orders or regular take-profit/stop-loss orders.
- A trailing order may not always be successfully triggered. It can fail due to position limits, insufficient margin, or if the contract is in a non-tradable state. Once triggered, the market order functions like a standard IOC market order and may not be fully filled. Any unfilled or partially filled orders will appear under [Order History] - [Limit/Market].
- If the order is filled, it will close the corresponding position or open a new one according to the order amount. If the order fails, your position and margin remain unaffected.
- The maximum order amount for a single trailing stop order varies by futures and may be adjusted according to market conditions.
User Guide for App
Place a trailing stop order
Step 1: On the futures trading page, switch the order type to "Trailing Stop" to check the order entry form. Step 2: Fill in the required fields—"Pullback Rate" and "Amount"—then place the order. If no "Activation Price" is set, the trailing stop order will be activated immediately upon placement.
| Parameter | Description | Notes |
|---|---|---|
| Pullback Rate (Required) | The pullback rate is the main factor for calculating the actual trigger price. You can set it using either "Percentage" or "Price Offset". The actual trigger price is calculated based on the historical high/low and the pullback rate. | Percentage: The historical high is 50,000, and the pullback rate is 5%. Trigger price = 50,000 × (1–5%) = 47,500. Price Offset: The historical high is 50,000, and the pullback rate is 5,000 USDT. Trigger price = 50,000 – 5,000 = 45,000. |
| Amount (Required) | The amount for the trailing stop order, which also determines the size of the market order once the trailing stop order is triggered. | None |
| Activation Price (Optional) | The activation price is the condition for triggering the trailing stop order. When the market price (latest traded price / mark price / index price) reaches or surpasses the activation price, the order is activated and the actual trigger price starts being calculated. The default value is the latest traded price. | If no activation price is set, the order will be activated immediately. |
Submit Trailing TP
Step 1: In your position, click [TP/SL], switch to the Trailing TP tab, and the order entry form will be displayed. Step 2: Fill in the required fields—"Pullback Rate" and "Amount"—then place the order. If no Activation Price is set, the Trailing TP will be activated immediately upon placement.
Notes:
1. When using a Trailing TP to close a position, please carefully calculate the Activation Price and Pullback Rate to ensure the Trailing TP order is profitable upon activation. This allows the order to lock in additional gains as it automatically adjusts the trigger price with subsequent market fluctuations.
2. If you hold a long position, your Trailing TP order will be a market sell order. The "Activation Price" you set must be higher than the position's entry price or the latest traded price.
3. If you hold a short position, your Trailing TP order will be a market buy order. The "Activation Price" you set must be lower than the position's entry price or the latest traded price.
View/Edit Trailing Stop Order
Step 1: In the "Open Orders" list, switch the order type to "Trailing Stop" to view all placed trailing stop orders. Step 2: Click the "Edit" icon to modify trailing stop orders with a status of "Pending". Trailing stop orders with a status of "Active" are tracking market movements and cannot be edited.
Cancel Trailing Stop Order
On the "Trailing Stop Order" page, click the "Delete" icon to cancel a specific order, or click "Cancel All" to cancel all trailing stop orders and trailing take-profit orders.
User Guide for Web
Place a trailing stop order
Step 1: On the futures trading page, switch the order type to "Trailing Stop Order" to check the order entry form. Step 2: Fill in the required fields—"Pullback Rate" and "Amount"—then place the order. If no "Activation Price" is set, the trailing stop order will be activated immediately upon placement.
| Parameter | Description | Notes |
|---|---|---|
| Pullback Rate (Required) | The pullback rate is the main factor for calculating the actual trigger price. You can set it using either "Percentage" or "Price Offset". The actual trigger price is calculated based on the historical high/low and the pullback rate. | Percentage: The historical high is 50,000, and the pullback rate is 5%. Trigger price = 50,000 × (1–5%) = 47,500. Price Offset: The historical high is 50,000, and the pullback rate is 5,000 USDT. Trigger price = 50,000 – 5,000 = 45,000. |
| Amount (Required) | The amount for the trailing stop order, which also determines the size of the market order once the trailing stop order is triggered. | None |
| Activation Price (Optional) | The activation price is the condition for triggering the trailing stop order. When the market price (latest traded price / mark price / index price) reaches or surpasses the activation price, the order is activated and the actual trigger price starts being calculated. The default value is the latest traded price. | If no activation price is set, the order will be activated immediately. |
Submit Trailing TP
Step 1: In your position, click [TP/SL], switch to the Trailing TP tab, and the order entry form will be displayed. Step 2: Fill in the required fields—"Pullback Rate" and "Amount"—then place the order. If no Activation Price is set, the Trailing TP will be activated immediately upon placement.
Notes:
- When using a Trailing TP to close a position, please carefully calculate the Activation Price and Pullback Rate to ensure the Trailing TP order is profitable upon activation. This allows the order to lock in additional gains as it automatically adjusts the trigger price with subsequent market fluctuations.
- If you hold a long position, your Trailing TP order will be a market sell order. The "Activation Price" you set must be higher than the position's entry price or the latest traded price.
- If you hold a short position, your Trailing TP order will be a market buy order. The "Activation Price" you set must be lower than the position's entry price or the latest traded price.
View/Edit Trailing Stop Order
Step 1: In the "Open Orders" list, switch the order type to "Trailing Stop Order" to view all placed trailing stop orders. Step 2: Click the "Edit" icon to modify trailing stop orders with a status of "Pending". Trailing stop orders with a status of "Active" are tracking market movements and cannot be edited.
Cancel Trailing Stop Order
On the "Trailing Stop Order" page, click the "Delete" icon to cancel a specific order, or click "Cancel All" to cancel all trailing stop orders and trailing take-profit orders.
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