> For the complete documentation index, see [llms.txt](https://docs.bullpen.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bullpen.fi/trading/order-types/tp-sl.md).

# Take Profit / Stop Loss

Conditional orders that close positions at target prices.

## Overview

**Take Profit (TP)**: Triggers when price moves favorably to lock in gains. **Stop Loss (SL)**: Triggers when price moves against you to limit losses.

You can attach TP/SL to new orders or add them to existing positions.

## Use When

* Managing risk on every position
* Automating exits at predetermined levels
* Trading without constant monitoring
* Enforcing discipline (no emotional exits)

## How It Works

### Take Profit

1. Set a target price above your entry (long) or below (short)
2. When mark price reaches target, triggers an exit order
3. Default: market order with 10% slippage tolerance
4. Optional: set limit price for tighter control

### Stop Loss

1. Set a stop price below your entry (long) or above (short)
2. When mark price hits stop, triggers an exit order
3. Default: market order with 10% slippage tolerance
4. Optional: set limit price to avoid worst-case slippage

## Key Details

* **Triggers on mark price**: Uses mark price (not last price) to prevent manipulation
* **Default 10% slippage**: Market TP/SL allows up to 10% slippage for guaranteed execution
* **Limit price option**: Set custom limit prices for tighter control
* **Full position close**: Position-level TP/SL closes entire position by default
* **One cancels other**: When TP triggers, SL auto-cancels (and vice versa)

## Setting TP/SL

### On New Orders

When placing an order, expand the TP/SL section:

1. Enable Take Profit and/or Stop Loss
2. Set target prices
3. Optional: set limit prices if you don't want market orders
4. Submit order with TP/SL attached

### On Existing Positions

1. Click the pencil icon next to your position
2. Open TP/SL menu
3. Set target prices
4. Save changes

## Parameters

* **Take Profit Price**: Target profit level
* **Stop Loss Price**: Maximum loss level
* **TP Limit Price** (optional): Tighten TP execution price
* **SL Limit Price** (optional): Prevent extreme stop loss slippage
* **Size**: Partial or full position (defaults to full)

## Market vs Limit TP/SL

### Market TP/SL (Default)

* ✅ Guaranteed execution
* ✅ Simple to set
* ❌ Up to 10% slippage allowed
* Best for: Most traders, especially in volatile markets

### Limit TP/SL

* ✅ Price control
* ❌ May not fill in fast markets
* ❌ More complex to set
* Best for: Low-volatility assets or when price control > execution certainty

## Best Practices

### Setting Levels

* **Risk/Reward ratio**: Aim for at least 2:1 (TP twice as far as SL)
* **Support/Resistance**: Set stops below support (long) or above resistance (short)
* **ATR-based stops**: Use 1-2x Average True Range for stop distance
* **Round numbers**: Avoid exact round numbers (e.g., $100). Use $99.50 or $100.50 instead

### Size Management

* **Partial TPs**: Take 50% profit at first target, let rest run
* **Trailing stops**: Manually adjust SL as price moves in your favor
* **Scale out**: Use multiple TPs at different levels

### Avoiding Common Mistakes

* ❌ **Too tight**: Stops hit by normal volatility
* ❌ **No TP**: Letting winners turn into losers
* ❌ **Moving stops**: Widening stops on losing trades (breaking discipline)
* ❌ **Ignoring slippage**: Not accounting for 10% slippage on market TP/SL
* ✅ **Set and forget**: Trust your initial plan

## TP/SL on Hyperliquid

For full technical details on how TP/SL works on Hyperliquid:

* [Hyperliquid Docs: TP/SL Orders](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/take-profit-and-stop-loss-orders-tp-sl)

## Example

**Long BTC at $95,000**

* Entry: $95,000
* Take Profit: $98,500 (+3.68%)
* Stop Loss: $93,100 (-2%)
* Risk/Reward: 1.84:1

If BTC hits $98,500 → TP triggers, position closes with profit If BTC hits $93,100 → SL triggers, position closes with loss Risk is defined before entering the trade.


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