To set a stop-loss or take-profit, choose an exit type, set its trigger and (if applicable) its limit price, enter the quantity, then verify how the exchange links the order to your position. The trigger is the condition that activates an order—not a promise that you will trade at that price. A market-based exit prioritizes execution but can fill at a different price; a stop-limit gives price control but may not fill.
Understand the order before you place it
A stop-loss is a conditional exit intended to reduce a loss if the market moves against a position. A take-profit is a conditional exit intended to close some or all of a position after a favorable move. Depending on the exchange and product, either can submit a market order or a limit order once its trigger condition is met.
Keep the trigger and execution separate in your mind: the trigger tells the exchange when to act; the order type determines how it tries to execute. Names and available controls differ across spot and derivatives markets, so use the order form for the product you are trading rather than assuming every exchange behaves alike.
Market-based stop
When the trigger is reached, a market-based stop submits a market order. It prioritizes execution, but the actual fill can differ from the trigger price, especially if the market moves quickly. Kraken describes its stop-loss order as a market order submitted when the trigger condition is met: Kraken stop-loss orders.
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Stop-limit
A stop-limit submits a limit order when the trigger is reached. The limit sets the worst price you are willing to accept, but it does not guarantee a fill: if the market moves past the limit, the order can remain open and unfilled. See Binance’s stop-limit explanation and Kraken’s order guide.
Choose the right order for your position
| Exit type | What happens at the trigger | Main trade-off |
|---|---|---|
| Market-based stop | A market order is submitted. | Prioritizes execution; fill price can differ from trigger. |
| Stop-limit | A limit order is submitted. | Controls the limit price; may not fill if the market moves beyond it. |
| Take-profit | A market or limit exit is submitted, depending on the exchange’s control. | Check the selected execution type and whether it is linked to another exit. |
For a long spot holding, a sell-side take-profit is generally above the current price and a sell-side stop trigger below it. That is the orientation in Binance’s Spot OCO example, not a universal setup: Binance Spot OCO instructions.
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For a short or derivatives position, the order side and favorable or unfavorable price direction are different from a long spot holding. Do not copy a spot sell example mechanically. Coinbase’s derivatives guide allows a take-profit, stop-loss, or both to be added to a new order or an existing position; when both are added, they are linked as OCO: Coinbase derivatives TP/SL guidance.
Set the exits in the exchange order form
Exact controls depend on the venue, product, region, and current interface. The following Binance example applies to Spot OCO, which pairs a limit order with a stop-limit order; it is not a general recipe for derivatives or other exchanges.
- Open Binance’s Spot trading interface and select the OCO order type, following the Binance Spot OCO instructions.
- Enter the take-profit limit price, the stop trigger price, and the stop-loss limit price.
- Enter the amount you want the linked exits to cover. For a long spot holding in a sell-side example, Binance suggests setting the take-profit limit above the current price and the stop trigger below it.
- Review the order details and submit. Binance says submitted OCO orders appear under Open Orders, and executions are recorded in Order History.
On other products, look for the exchange’s TP/SL or conditional-order controls and follow the displayed instructions. For example, Coinbase documents adding TP, SL, or both to a new derivatives order or an existing position. The interface and eligibility can vary by region.
Check the trigger, quantity, and position linkage
Before submitting, check these details in the order form; they determine which price activates the exit and whether it still matches your position.
- Trigger reference: An exchange may trigger from last traded price, index price, mark price, or another reference. Coinbase says to review the selected reference because it may differ from the chart price. Kraken documents index or last-traded price depending on availability. Coinbase guidance and Kraken guidance.
- Quantity: Confirm whether the exit covers the whole position or only part of it. After a partial or manual close, check whether the exchange adjusts, cancels, rejects, or leaves the remaining exit order in place.
- Linkage: OCO links alternative exits so one is canceled when the other executes or is activated, according to the venue’s implementation. Binance Spot’s documented OCO pairs a limit order with a stop-limit order. Read the exchange’s description rather than assuming all OCO controls work identically.
- Reduce-only or position-linked setting: Kraken says its stop-loss is an independent order by default unless reduce-only is selected, so another exit can leave an order that needs cancellation. Coinbase says its TP/SL exits are reduce-only and may be adjusted, canceled, or rejected based on the remaining position and other open orders. Kraken order guide and Coinbase derivatives guidance.
- Open orders after submission: Verify that the exits appear in the open-orders list or in the position’s TP/SL controls. If you close or reduce the position another way, review and cancel any exit that no longer applies.
What these orders cannot guarantee
A stop-limit can fail to execute if the market moves beyond its limit, while a market-based stop can fill at a price different from its trigger. TP/SL orders do not guarantee a profit, a maximum loss, or protection from liquidation, as Coinbase states in its derivatives TP/SL guidance. Check the exchange’s current support documentation and order form for the product and region you are using before submitting an order.
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