A trigger activates an order. It does not guarantee the price you receive.
Choose what ends the trade
A stop loss expresses where you want to exit an adverse move. A take profit expresses where you want to exit a favorable one. For a long, those levels are usually below and above entry respectively; for a short, the directions reverse.
Base the levels on the trade’s assumptions and size. Moving an exit only because you dislike the current loss can change the risk you originally agreed to take.
Market and limit exits behave differently
A triggered market order seeks execution subject to its execution constraints. It can fill away from the trigger during a fast move. A triggered limit order constrains the price but may remain unfilled if the market moves past it.
Check the trigger reference and position side. A limit entry plus a stop exit creates two different execution conditions, and one does not guarantee the other.
Keep exits aligned with the position
After a partial close, check that remaining exits match the remaining position. Use reduce-only when the intent is solely to decrease exposure. Cancelling an entry order does not necessarily remove a filled position.
Do not use a liquidation threshold as a substitute for an exit plan. Liquidation is controlled by the venue’s margin system, and your chosen exit can be affected by liquidity before that point.
The gap problem
A long has a stop trigger at $95. If available bids fall quickly from $96 to $92, the trigger can activate without producing a $95 fill. A stop-limit at $95 could instead remain unfilled.
Illustrative figures only. Not a price forecast or trade recommendation.Further reading
Protocol details and market rules can change. Check the current specification before trading.
Educational content, not investment advice. Trading perpetuals can result in substantial loss. Market access is subject to eligibility and location. Product disclosures.