> ## Documentation Index
> Fetch the complete documentation index at: https://docs.entry.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Take profit and stop loss

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](/using-the-terminal/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.

## 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

## 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.

<Info>
  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.
</Info>

## 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](/trading-basics/pnl-entry-price-mark-price) matters when you place protective orders.

## 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

<Warning>
  In fast markets, a trigger does not guarantee an exact final execution price.
</Warning>