Mastering Risk with Take-Profit and Stop-Loss Orders in Crypto Futures Trading

Written by BTSE

September 7, 2023

Mastering Risk with Take-Profit and Stop-Loss Orders in Crypto Futures Trading

Cryptocurrencies, with their roller-coaster price movements, present traders with a golden chance to make profits. However, this high volatility can be a double-edged sword. A promising trade can quickly go south if you’re not careful. That’s why a well-thought-out trading strategy is essential to keep emotions at bay.

BTSE advocates for responsible trading in these unpredictable crypto markets. It’s not just about making the right moves but also about having the discipline to avoid impulsive decisions.

The real game-changer? Knowing when to jump into a trade, when to step out, and when to cut your losses. By doing so, you shield your trading account from massive hits.

Enter BTSE’s latest feature: the take-profit (TP) and stop-loss (SL) orders. These tools not only help you manage risks but also ensure your trading decisions remain free from emotional biases, leading to a more relaxed trading experience.


Understanding Take-Profit and Stop-Loss Orders


Think of TP and SL orders as your trade’s exit buddies. They kick into action once a set price level is hit, either sealing in a profit or capping a loss.

Your trading style will guide where you set these orders. Whether you’re into candlestick patterns, chart patterns, trendlines, or technical indicators, TP/SL orders free you from the anxiety of when to exit a trade.

Given the unpredictable nature of crypto markets, every trade should have an exit strategy. That’s where TP and SL orders come in, acting as your safety net.


Why Use Take-Profit and Stop-Loss Orders?


While both TP and SL orders close positions, they serve different purposes. TP orders lock in anticipated profits, whereas SL orders limit potential losses.

It’s crucial to weigh the risk-to-reward ratio for each trade. Essentially, you’re gauging the risk you’re taking against the potential reward. For instance, if a trade offers a 10% profit but carries a 5% loss risk, the risk-to-reward ratio is 1:2. This implies that there are two units of expected return for each additional unit of risk.

BTSE simplifies this with its Advanced TP/SL feature. It lets traders set TP and SL orders based on expected percentage gains or losses, and even offers an estimated profit and loss projection.

In essence, TP and SL orders are your risk management superheroes. While TP orders capture profits from correct market predictions, SL orders shield you from adverse market swings. Think of them as a safety net for your investments.

Plus, with these orders in place, you can focus on other tasks, knowing your trades will be handled automatically when conditions are met.


Setting Up Take-Profit and Stop-Loss Orders on BTSE


Before diving in, identify a trade setup, evaluate the triggers, and decide on your position size. Your trading preference, be it candlestick patterns or technical indicators, should guide your entry point and the ideal time to make a move. Based on this, decide how much of your capital you’re ready to stake.

On BTSE, setting TP and SL orders is a breeze. Navigate to [Trade] -> [Futures], select [Take Profit / Stop Loss], and input your desired [Take Profit] and [Stop Loss] prices. For more control, click on [Advanced].


Take-Profit and Stop-Loss Orders on BTSE


Time to Apply What You’ve Learned!


In the volatile world of crypto futures trading, risk management is your best ally. By adopting a robust strategy, you not only maximize returns but also shield yourself from potential downturns.

Sign up for a BTSE account here

Trade BTSE Futures here.

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Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at or on X @BTSE_Official.

Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.

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