How to set up stop-loss and take-profit levels

On the Monochrome Exchange, users can manage risk by setting flexible take-profit and stop-loss levels, allowing for automated closure of positions when a target profit or controlled loss is reached.

1. Setting Take-Profit and Stop-Loss When Placing an Order

Take-profit and stop-loss orders can be set when you place a new order, as follows:

• Enter the Order Quantity: Specify the amount of the contract to trade.

• Check the Take-Profit/Stop-Loss Box: Set your desired take-profit and stop-loss prices.

  Note: Monochrome supports three types of prices for triggering take-profit and stop-loss:

  • Mark Price
  • Index Price
  • Latest Price

The take-profit and stop-loss settings apply to the entire position, and once the order is fully or partially filled, the system will submit the take-profit/stop-loss order. When triggered, the entire position will close at the market price.

2. Advanced Take-Profit and Stop-Loss Settings

For additional customization, click Advanced after selecting the Take-Profit/Stop-Loss checkbox:

• Choose Position Direction: Set either long or short.
• Set Trigger Price: Options include Mark Price, Index Price, Latest Price, or based on price fluctuations.
• Market or Limit Take-Profit/Stop-Loss:
  • Click Market/Limit to toggle between the two modes.
  • If Market is not selected, the limit mode will be enabled, allowing users to set both the trigger and order price.

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3. Adding Take-Profit and Stop-Loss to an Open Position

If you already have an open position, you can add take-profit and stop-loss levels by following these steps:

• Go to the Current Position page, find the contract, and click Add to set up take-profit and stop-loss.

4. Take-Profit and Stop-Loss Modes Supported by Monochrome

• Partial Position: Applies to a fixed quantity of the position. When the position quantity changes, the take-profit/stop-loss quantity remains unchanged, allowing multiple take-profit and stop-loss orders.

• Entire Position: Applies to the entire position. When the position quantity changes, the take-profit/stop-loss quantity adjusts accordingly. When the trigger price is reached, the position closes at the market price. Only one take-profit and stop-loss order is allowed in this mode.

  Note:

  • If the position exceeds the market order's maximum quantity limit, or if the margin is insufficient at trigger time, the order might fail.
  • Take-profit and stop-loss orders will not freeze the position prior to triggering.

Additional Notes

• Market Price Orders: When a take-profit or stop-loss order triggers at market price, the system will execute it at the best available price. However, the actual execution price may vary depending on market conditions.