Search
Results for “Stop-loss order vs Take-profit order”
Stop-loss order
A stop-loss order is an instruction to sell, or buy back, automatically once the price reaches a level you set, called the stop price. When that price is hit, the order becomes a market order, aiming to cap a loss on a position you hold.
What it means for you. A stop price is a trigger, not a guaranteed price. In a fast or thin market your sale can fill well below the stop, and a brief dip can trigger the sale before the price recovers. Once executed, the trade cannot be undone. Platforms differ on whether the last trade or the quotes trigger it.
Sources: SEC Investor Bulletin: Stop, Stop-Limit, and Trailing Stop Orders, FINRA: Stop Orders: Factors to Consider During Volatile Markets · checked 4 October 2026
Take-profit order
A take-profit order is an order to close a position automatically once the price reaches a target in your favour. For a coin you hold, it works as a sell limit order placed above the current price: it fills only at the target price or better.
What it means for you. A take-profit fills only if the market actually reaches your price. If the price stops just short and turns, nothing happens. Once it fills, any further rise is not yours. Some platforms link it to a stop-loss so that one cancels the other and some do not; check which, or both can stay live.
Sources: SEC Investor Bulletin: Understanding Order Types, CFTC Glossary · checked 4 October 2026