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Take profit and stop loss are exit orders that help manage a position automatically. In Entry Finance, their practical setup is covered in How to manage TP/SL.
  • Take profit locks in gains
  • Stop loss limits downside
They are some of the most useful order tools in a trading terminal because they help you plan the trade before emotion takes over.

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How they work

These orders are usually based on a trigger level. When the market reaches that level, the system sends an order to close part or all of your position. Depending on the setup, that exit may use:
  • market execution for faster fills
  • limit execution for more price control

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Simple example

Imagine you open a long on BTC at 60,000.
  • If BTC rises to 63,000, you want to secure profit
  • If BTC falls to 58,500, you want to cut the trade
So you place:
  • a take profit at 63,000
  • a stop loss at 58,500
Now the trade has structure before the market starts moving.
A good trade plan is not only about entry. It also includes where you exit if you are right and where you exit if you are wrong.

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Important detail about triggers

On many derivatives platforms, protective orders are triggered using the mark price, not only the last traded price. That means the chart can show one number while the trigger logic uses another. This is done to reduce unfair triggers from short-lived spikes. That is also why understanding PnL, entry price, mark price matters when you place protective orders.

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Market TP/SL vs limit TP/SL

  • Market TP/SL focuses on getting filled quickly
  • Limit TP/SL focuses more on price control
The trade-off is familiar:
  • market execution gives more certainty of fill
  • limit execution gives more price control but less certainty
In fast markets, a trigger does not guarantee an exact final execution price.