1. After TP and SL are triggered, what order type will be used to place the order?
SL and TP orders support market price, limit price, and best price. There may be a difference between the trigger price and the execution price for market orders due to market fluctuations. We recommend that users prioritize limit orders during trading to avoid price slippage caused by market execution.
2. Why was my order liquidated even though I set a stop loss? Why was my SL order canceled?
During periods of extreme market volatility, market prices may deviate significantly from the SL trigger price, causing the SL order to fail to execute. If the SL price is set too close to the liquidation price, the order may fail to execute. When a position is liquidated, the system will cancel all active orders, conditional orders, and SL/TP orders.
Monochrome's forced liquidation is triggered by the mark price. Users can choose their own SL trigger price (default is the latest transaction price). Therefore, before the SL is triggered by the latest transaction price, the mark price may trigger forced liquidation.
3. Why did my TP and SL orders fail to trigger?
TP and SL orders may fail to trigger due to severe market volatility or insufficient position size. If a TP or SL order is triggered but not executed, it may be because different trigger price types are set, causing the order not to be truly triggered. The SL and TP trigger prices must be successfully triggered before the order can be sent to the market.
When setting trigger prices for SL and TP, you can choose from three types: latest price, mark price, and index price. You can view the trends of these prices on the candlestick chart, switch between them, compare with your set trigger price, and verify whether it has actually been triggered. If the TP or SL trigger price has not been triggered, the order will not be executed.
Example:
ETHUSDT perpetual contract: long position with an average entry of 3,200, TP trigger price (mark price) set at 4,000, TP limit order price (market order) at 4,000. If the latest price reaches 4,000 but the mark price has not, the TP order will not be triggered. The market order to close the position will not be sent, thus will not be executed.
TP/SL orders can be market or limit orders. A market order is executed at the best available price once triggered, while a limit order is executed at the price you set. By default, TP/SL orders are market orders, but you can change them to limit orders. To increase the likelihood of execution, it is recommended to set the limit buy price above the trigger price and the limit sell price below the trigger price.
Example:
ETHUSDT perpetual contract: long position with an average entry of 3,204.6, SL trigger price (latest price) set at 3,200. If both the trigger price and limit price are set to 3,200, then when the latest price drops to 3,200, the SL limit order is placed at 3,200. In fast declines, the order may fail to execute or only partially execute. In this case, it is better to set the SL limit price to 3,198. This increases the likelihood of execution after the trigger.
Other possible reasons for failure include: market volatility and depth causing incomplete execution, exceeding maximum order size, insufficient margin, or orders being queued behind others with better price or earlier time priority.
In summary, whether TP and SL orders are fully executed depends on trigger price type, order type, market volatility, market depth, order size, and margin sufficiency. We recommend setting parameters reasonably to manage trading risks.
4. Why is the profit and loss after the order actually triggered inconsistent with what I set?
Transaction fees, changes in the average entry price, and actual execution prices all affect profit and loss. Adding to a position changes the average entry price, but TP and SL trigger prices remain fixed as set and do not change accordingly.
5. Why is the price after TP and SL orders triggered inconsistent with what I set?
A market order is executed immediately at the best market price. The execution price comes from the order book’s limit orders, which may differ from your expected price. We recommend using limit orders when setting TP and SL levels to avoid slippage caused by market execution.
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