Spot limit orders are a type of order you place on the MEXC spot trading market to buy or sell a certain quantity of assets at a specific price or better price. Setting stop-loss (SL) and take-profit (TP) points involves simultaneously setting two price trigger conditions when placing such an order. These conditions ensure the automatic execution of corresponding trading operations upon reaching a certain profit or preventing excessive losses.
The limit order TP/SL feature involves simultaneously setting a TP price and/or SL price when placing a limit order (i.e., buying or selling at a specific price). These two prices are pre-set levels used to trigger the trading system to automatically execute specific operations when they are reached.
If the current price of the MX token is 2.75 USDT/MX, and you wish to buy it at a lower price, you will set the buy price for your limit order at 2 USDT/MX along with the quantity of MX you wish to purchase. Additionally, if you anticipate the MX token to rise to 3.5 USDT/MX, you would like to lock in your profits at this price point.
At this point, you need to set a TP price:
At this point, you need to set an SL feature price:
= 3.5 USDT/MX x 100 - 2 USDT/MX x 100
= 350 USDT - 200 USDT
= 150 USDT
= 2 USDT/MX x 100 - 1.5 USDT/MX x 100
= 200 USDT - 150 USDT
= - 50 USDT
The Limit Order TP/SL feature includes two trading behaviors: Buy first, then sell, or sell first, then buy.
For instance, trading strategies like selling high and buying low can be made, akin to the practice of "shorting" digital assets.
For example, use this feature to execute a single buy or sell order that suits your preferences.
3. Set the parameters related to [Limit] orders.
4. Set TP/SL parameters.
The TP/SL points are triggered effectively when the corresponding limit order is completely filled. If the limit order is only partially filled, the TP/SL functions will not activate, even if the set trigger prices for TP/SL are reached.
a. Insufficient balance in the user's account during the generation of TP/SL orders leads to order generation failure.
b. The pre-generated TP/SL orders fail to meet the platform's minimum order amount, resulting in order generation failure.
The Limit Order TP/SL feature can assist you in achieving profits and limiting losses in both bid and ask markets of spot trading. In practical operations, you can set predefined price levels for TP/SL. During actual trading, once your limit order is executed, the TP/SL prices will be triggered based on market conditions.
Risk Warning: The advantage of setting SL/TP points for limit orders is that it can help investors control risks and automate trading. However, the disadvantage is that market volatility may cause conditional orders to not execute as expected. When using this feature, it is important to closely monitor market fluctuations and risks, and ensure that your trading strategy aligns with your investment goals and risk tolerance.
Disclaimer: Cryptocurrency trading involves risk. This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.