DueDEX has supported four types of orders:
- Market Order
- Limit Order
- Conditional Order
- Placing Order via Risk Manager
Traders are able to select these different methods to place an order based on their own preferences, but Take-Profit and Stop-Loss are the universal requirements for all orders. We will introduce how to realize Take-Profit and Stop-Loss with the four order types mentioned above.
Take-Profit and Stop-Loss setting for these three types of order is similar. It’s on the confirmation pop-up after you placing an order. It is optional. Traders who want to use this function need to select the Take Profit and/or Stop Loss option.
Then, more details of the Take-Profit and Stop-Loss setting will be displayed. Traders need to fill in the Trigger Price for Take Profit and Stop Loss and then select the Trigger Type. Three different types, Last Price, Index Price and Mark Price, are available. It’s worth mentioning that when filling in the Trigger Price, users can either fill in the price directly or adjust the Profit Rate and Loss Rate by sliding on the corresponding bar.
After the settings, click Confirm and the order will show up in its corresponding section.
2. Conditional Order
Proper use of Conditional Orders can realize the benefit of Take-Profit and Stop-Loss. Basic rule is based on your current position, buy same amount of opposite position at your Take Profit and Stop Loss price. We will use an example to clarify how it works.
A trader is holding 100 Short contracts with an open price at 9134 USD and he plans to stop loss at 9600 USD and take profit at 8300 USD.
A. Stop Loss with Conditional Orders
If Conditional Market Order is used to stop loss. buy 100 contracts with a Trigger Price at 9600.
It’s worth mentioning that when setting Stop Loss with the Conditional Market Order, if the Trigger Price is reached, the order will be closed. However when the quantity of the order is big and there’s not a good market depth, a slippage can be caused and will lead to additional loss.
If Conditional Limit Order is being Used, then set Trigger Price at 9600, Order Price at 9601 and buy 100 contracts.
To make sure your order can be closed when triggered, please set your Order Price slightly higher than the Trigger Price. Similarly, the real close price can vary due to market depth and market changes.
B. Take Profit with Conditional Orders
Similarly, Take Profit can be used with Conditional Orders. With Conditional Market Order, buy 100 contracts with Trigger Price at 8300 and with Conditional Limit Order, buy 100 contracts with Trigger Price at 8300 and Order Price at 8301.
Attention: Reduce-only needs to be selected in the above cases. If not selected, new orders will be placed instead of closing your current order. On DueDEX, by default, Reduce-only is selected.
3. Risk Manager
The core value of DueDEX Risk Manager is to enable traders to integrate their Take Profit and Stop Loss strategy at the very beginning of their order placing process. Therefore Take Profit and Stop Loss settings are required steps by default.
Similar to three other types of orders, users are able to set up the Profit and Loss Rate by either filling the percentage directly or sliding on the corresponding bar. Moreover, Risk Manager goes deeper in the risk management tour by enabling users to calculate the quantity of the order based on the maximum percentage of account balance the trader can bear losing for this specific order.
Risk Manager can only be used when there’s no current positions. So different from Conditional Order which applies Take Profit and Stop Loss after the order is placed, Risk Manager does it beforehand with more detailed references.
This is how Take Profit and Stop Loss settings are configured for different types of orders on DueDEX. We do recommend you to use Risk Manager. As you can see, it’s a one stop suite for more comprehensive risk relevant configuration and you will be able to get a clear picture of your order at the very beginning.