How to use Take Profit and Stop Loss orders

Take Profit and Stop Loss orders let you set the price at which a trade closes automatically, so you can manage your risk without watching the market. Set your levels in advance, and your order triggers automatically.

This guide explains how both orders work on Independent Reserve, how to set them on Bitcoin, Ethereum and other supported crypto assets, and what to expect once they trigger.

Set up Take Profit and Stop Loss

Key takeaways

• Take Profit closes a position when the price rises to a target you set. Stop Loss closes a position when the price falls to a level you set.
• You can set both on the same position at the same time. Whichever side triggers first closes the position and cancels the other side’s position.
• Available on market buy orders, limit buy orders, and leveraged positions. Targets can be set by token price, the fiat profit or the fiat loss amount you are willing to accept before the position closes.
• Orders are designed to trigger at your set price, though slippage or price gaps can affect the outcome in fast-moving markets.

What are Take Profit and Stop Loss orders?

Take Profit and Stop Loss are orders that sit in the background and only trigger when certain conditions are met. You set a price in advance; if the market reaches it, the order triggers and your position closes automatically with no manual action required.

You can set both on the same position at the same time, giving you a two-sided exit: one level to lock in a potential gain, another to limit a potential loss. Whichever price is reached first closes the position and cancels the other. This is known as a one-cancels-the-other (OCO) order.

• Take Profit closes your position when the market reaches a target price above the current price. It locks in potential gains without you needing to watch the market.
• Stop Loss closes your position when the market falls to a level below the current price. It limits the potential loss.

Setting both Take Profit and Stop Loss on the same position means you have a defined exit in either direction.

Where can you set Take Profit and Stop Loss?

All order types can be managed via the desktop/website portal. Managing leveraged trading TP/SL is available on the Independent Reserve mobile app.

You can set or update these orders in three places:

1. Leveraged trading: set it when opening a new position or managing an existing one. 
2. Trade screen (Profit & Loss tab): set or update it any time from the Action column. 
3. After placing a market order: set it when you are prompted after placing a new order. 

In each case, you can define your target by price or by a fiat amount.

How to set Take Profit or Stop Loss

On a leveraged position

When setting up a new leveraged position, you can define each side by either a target price or a fiat amount.

Once the position is open, you can set both a target price and fiat amount on the same side, giving you more precision over when each order triggers.

• Target price: the market price at which the order will trigger.
• Amount in fiat: the profit or loss amount in fiat at which the order will trigger.

For more on how leveraged trading works, see our leveraged trading guide.

From the trade screen (Profit & Loss tab)

If the order does not yet have Take Profit or Stop Loss set:

1. Select Set up in the Action column.
2. Enter a target price or fiat amount.
3. Review the details.
4. Select Confirm.

If the order already has Take Profit or Stop Loss set:

1. Select Edit in the Action column.
2. Update the target price or fiat amount.
3. Review the details.
4. Select Confirm.

After placing a market order

1. Select Take Profit or Stop Loss on the review screen.
2. Choose a percentage or enter a custom profit amount.
3. Review the details.
4. Select Confirm.

What happens once the Take Profit or Stop Loss triggers?

When Take Profit or Stop Loss triggers, your position closes and settles. Your account balance updates to reflect the result.

If you’ve set both, this will operate as an OCO order. As soon as one side fills, the other is cancelled automatically.

For example:

• If your Take Profit order triggers first, your Stop Loss order is cancelled.
• If your Stop Loss order triggers first, your Take Profit order is cancelled.

How Take Profit and Stop Loss differ from limit orders

Both are conditional orders that trigger at a price you choose, but they serve different purposes.

• Limit orders open a position. They fill when the market reaches the price you set.
• Take Profit and Stop Loss are used to close an existing position. They trigger when the market reaches your exit price, helping you manage risk on positions you already hold.

Will my Take Profit or Stop Loss always trigger?

Under normal market conditions, these orders are designed to trigger at the price you’ve set. In some cases, the final price may differ:

• Slippage: In volatile or low-liquidity markets, slippage can cause the price to move past your target before the order fills. The order may still trigger, but at a slightly different price.
• Price gaps: if the market jumps past your trigger price, often around major news or periods of high volatility, your order may trigger at a worse price or, in rare cases, not at all.

No order type is fully guaranteed, but in typical conditions, your orders should trigger as expected.

Can I change or cancel a Take Profit or Stop Loss after it’s set?

Yes, you can update or remove either order at any time before it triggers.

• For market or limit buy orders, open the Profit & Loss tab at the bottom of the trade screen and select Edit to update or cancel your settings.
• For leveraged positions, open the position details and update your TP/SL settings from there.

Which crypto assets support Take Profit and Stop Loss?

You can set Take Profit and Stop Loss orders for:

• Bitcoin (BTC)
• Ethereum (ETH)
• Solana (SOL)
• Dogecoin (DOGE)
• XRP (XRP)

Are there any fees?

Standard trading fees apply. If you’ve set both a Take Profit and a Stop Loss, you’re only charged for the side that triggers, not both.

Can I set the target by token price or by profit or loss amount?

You can use either method, though the options available depend on where and when you set the order.

• On leveraged positions, you can set a target token price, the fiat profit or the fiat loss amount you are willing to accept before the position closes.
• For market or limit buy orders, choose a target token price or fiat amount from the trade screen or after placing the trade.

Trade with more control, on your terms

Take Profit and Stop Loss are useful tools when you want a defined exit, but they’re only one part of how you invest. Long-term holding, dollar-cost averaging and active trading all have a place, and they’re not mutually exclusive.

Independent Reserve is a trusted crypto exchange with Stop Loss and Take Profit order features on market, limit and leveraged positions, and has been a secure place to invest since 2013. Available in Australia, New Zealand, Singapore and globally. Note that leveraged trading is only available to corporate accredited investors in Singapore.

Log in to explore Take Profit and Stop Loss on your existing or next trade.