Tradoor
Tradoor Mini App User Guide
Tradoor Mini App User Guide
  • 👋Outline
  • 💱HOW TO TRADE ON TRADOOR
    • 🤔How do I make my first trade on Tradoor?
    • ⚙️How do I set up my wallet to start trading on Tradoor?
    • 💰How do I add funds to my Telegram wallet?
    • 📊Trading Perps 101
      • 🤔What is Perps Trading?
      • 🧭How to navigate Tradoor's Perps Trading Page
        • What does "Symbol" mean?
        • What does "Index Price" mean?
        • What does "24h" change mean?
        • What does "Open Interest" mean?
        • What does "Long/Short Rate" mean?
        • What does "1h Funding" and "1h Rollover" mean?
        • What does "Max Leverage" and "Average Leverage" mean?
        • What does "Available Liquidity" mean?
        • What does the Perps price chart mean?
        • What do the "long" and "short" button mean?
      • 🥇How do I make my first trade in Perps?
        • (1) Select between "Market Order" and "Limit Order"
        • (2) Enter the amount you would like to trade with
        • (3) Select the leverage you would like to trade with
        • (4) Have a look at your position
        • (5) Select your TP/SL
      • 🤑How do I make a profitable trade in Perps?
    • 📈Trading Options 101
      • 🧐What is Options Trading?
      • 🗺️How to navigate Tradoor's Classic Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does the "Options Price Chart" mean?
        • What do "Call" and "Put" mean?
        • What do "Positions" and "History" mean?
      • ☝️How do I make my first Classic Options trade?
      • 🚸How to navigate Tradoor's DNT Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does "Trigger" mean?
        • What do "Double No Touch Odds" mean?
        • What does the "Options Price Chart" mean?
        • What do "Positions" and "History" mean?
      • 🏆How do I make my first DNT Options trade?
      • 💰How do I make a profitable trade in Options?
      • 🎟️How do I use my Options Voucher?
  • ⚡Turbo Mode on Tradoor
    • ❔What is Turbo Mode?
    • 🌩️How do I start trading with Turbo Mode?
    • ✏️FAQs about Turbo Mode
  • 🌊ADD LIQUIDITY ON TRADOOR
    • 👀What is liquidity?
    • ❔Why add liquidity?
    • 🚰How to add liquidity to pools?
  • ❔Frequently Asked Questions
  • 🌟EARN REWARDS ON TRADOOR
    • 🎁What are $DOOR points?
    • 📊Earn rewards by trading
    • 👯Earn rewards by referring friends
    • 🏁Earn rewards by completing tasks
    • 🐂Earn rewards by feeding Sausage
  • 🤝GET CONNECTED ON TRADOOR
    • 👋How do I get connected on Tradoor?
  • 🛠️OTHERS
    • 🔮Oracle Data
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On this page
  • FAQs:
  • Step Five: Select your TP/SL
  • Take Profit
  • Stop Loss
  • Importance of Take Profit and Stop Loss
  1. HOW TO TRADE ON TRADOOR
  2. Trading Perps 101
  3. How do I make my first trade in Perps?

(5) Select your TP/SL

Previous(4) Have a look at your positionNextHow do I make a profitable trade in Perps?

Last updated 6 months ago

FAQs:


Step Five: Select your TP/SL

Take Profit

Definition: A take profit order is an instruction to close a position once the price reaches a predetermined level, securing a profit.

Purpose: The main goal is to lock in gains before the market can reverse. By setting a take profit level, traders can automate the exit from a profitable trade without needing to monitor the market continuously.

Implementation: Traders specify the price at which they want to take profit when they open a position or while the position is open. Once the market reaches that price, the order is executed automatically.

Example: If a trader buys Bitcoin at $50,000 and sets a take profit order at $55,000, the position will be closed automatically once the price reaches $55,000, securing the profits.


Stop Loss

Definition: A stop loss order is an instruction to close a position once the price reaches a predetermined level that signifies an unacceptable loss.

Purpose: The main goal is to limit potential losses in case the market moves against the trader’s position. By setting a stop loss, traders can protect their capital without having to watch the market constantly.

Implementation: Traders specify the price level for the stop loss when opening a position or while the position is active. If the market price hits this level, the order is executed automatically, closing the position.

Example: If a trader opens a long position in Ethereum at $2,000 and sets a stop loss at $1,900, the position will be closed if the price drops to $1,900, thereby limiting the loss.


Importance of Take Profit and Stop Loss

  • Risk Management: Both tools are essential for managing risk in trading. They help traders avoid emotional decision-making and maintain discipline in their trading strategies.

  • Automated Trading: By automating the exit points, traders can focus on other aspects of their trading strategy without having to monitor prices constantly.

  • Market Volatility: In volatile markets, take profit and stop loss orders can be especially important to protect gains and limit losses effectively.

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What is "Take Profit (TP)"?
What is "Stop Loss (SL)"?
What is the importance of take profit and stop loss?