Take-Profit, Stop-Loss, and Trailing Take-Profit/Stop-Loss Function Description

Dear User,

To help you understand SUNX's take-profit, stop-loss, and trailing take-profit/stop-loss functions, this document explains the trigger mechanisms, parameter settings, operating procedures, and relevant precautions. Before using these functions, please fully understand how each type of order is executed and set parameters reasonably based on your positions and risk tolerance.

1. Basic Mechanism of Take-Profit and Stop-Loss

The execution of take-profit and stop-loss consists of two processes:

1. Trigger process: When the reference price reaches the trigger condition you set, the system receives the position-closing instruction.
2. Order placement and position-closing process: The system submits a position-closing order based on the order type and order price you set.

A successful trigger does not mean that the position has been closed. The actual execution result is still affected by factors such as the order type, market liquidity, price fluctuations, and the quantity of positions available to close.

1. Trigger Price

The trigger price is the condition that initiates a take-profit or stop-loss position-closing instruction.

SUNX ordinary take-profit and stop-loss orders currently use the mark price as the trigger price. When the mark price reaches the specified trigger condition, the system submits a position-closing order according to your settings.

2. Order Price

The order price is the price setting used by the system when submitting a position-closing order after a take-profit or stop-loss order is triggered. You can choose:

• Market: After triggering, a market position-closing order is submitted, referred to as a market take-profit/stop-loss order.
• Limit: After triggering, a limit position-closing order is submitted at the specified price, referred to as a limit take-profit/stop-loss order.

You can set only a take-profit or only a stop-loss. However, each setting must specify both a trigger price and an order type. If you select a limit order, you must also enter the corresponding order price.

2. Market Take-Profit/Stop-Loss and Limit Take-Profit/Stop-Loss

1. Market Take-Profit/Stop-Loss

When the mark price reaches the trigger condition, the system submits a market position-closing order, which is matched against available quotes in the order book.

Characteristics: The objective is to achieve execution as quickly as possible. This is suitable for scenarios where you want to exit your position promptly after triggering.

Precautions: A market order does not guarantee execution at the trigger price or at the latest traded price displayed on the page when the order is placed. During sharp market fluctuations or when market depth is insufficient, slippage, partial execution, or failure to complete the position closing in a timely manner may occur.

2. Limit Take-Profit/Stop-Loss

When the mark price reaches the trigger condition, the system submits a position-closing order at the limit price you set.

Characteristics: You can set an acceptable execution price. A limit buy order is executed only at the order price or lower, while a limit sell order is executed only at the order price or higher. Valid saved settings are executed by the system when the trigger condition is met; you do not need to keep the page online.

Precautions: After a limit position-closing order is submitted, it will occupy the corresponding quantity of positions available to close, but immediate execution is not guaranteed, and the order may remain unfilled for an extended period.

Even if a price difference is reserved between the trigger price and the order price, the difference may still be insufficient to result in execution when the market changes rapidly. Therefore, a limit stop-loss order cannot guarantee that actual losses will remain within the preset range.

3. Relationship Between the Opening Price, Trigger Price, and Order Price

The following uses ETH/USDT as an example to explain the direction for setting take-profit and stop-loss orders. The examples are for explaining the mechanism only.

1. Take-Profit/Stop-Loss for a Long Position

Assume that the current latest traded price is 2,100 USDT and you submit a buy-to-open order at 1,890 USDT:

• Take-profit trigger price: Must be higher than 1,890 USDT.
• Stop-loss trigger price: Must be lower than 1,890 USDT.
• Order type after triggering: You can select a market order or set a limit order that complies with the platform's order rules.

After the position is established, check the take-profit and stop-loss settings based on the actual average opening price.

2. Take-Profit/Stop-Loss for a Short Position

Assume that you submit a sell-to-open order at 2,890 USDT:

• Take-profit trigger price: Must be lower than 2,890 USDT.
• Stop-loss trigger price: Must be higher than 2,890 USDT.
• Order type after triggering: You can select a market order or set a limit order that complies with the platform's order rules.

If execution speed is the priority, you can select a market order. Please also note that the actual execution price may differ from the trigger price.

4. Procedure for Setting Ordinary Take-Profit and Stop-Loss in the App

1. Setting When Placing an Order

1. Select “Take-Profit/Stop-Loss” in the order placement area.
2. Tap “Advanced” to open the take-profit and stop-loss settings window.
3. Enter the take-profit or stop-loss trigger price.
4. Select a market order or enter a limit order price.
5. Check the parameters and tap “Confirm” to save the settings.
6. After the opening order is executed, the corresponding take-profit and stop-loss settings will be saved to the position.
   

2. Setting in an Open Position

1. Find the position to be configured in the “Positions” list.
2. Tap the “pencil icon” next to Take-Profit/Stop-Loss or the corresponding edit entry.
3. Enter the trigger price and select a market order or enter a limit order price.
4. Check the settings and tap “Confirm”.
   
   
   5. Procedure for Setting Ordinary Take-Profit and Stop-Loss on the Web

1. Setting When Placing an Order

Select “Take-Profit/Stop-Loss” in the order placement area, enter the trigger price, and select a market order or enter a limit order price.

After checking the parameters, click “Buy to Open” or “Sell to Open”. After the order is successfully placed, the settings will be saved to the order. After the order is executed, the corresponding settings will be saved to the position.

2. Setting in an Open Position

Find the corresponding position in the “Positions” list, click the take-profit/stop-loss edit icon, enter the trigger price and order settings, and save after confirming.



Please note: The trigger price and corresponding order settings must be entered as a pair. You cannot enter only one of them.

6. Conditions for Ordinary Take-Profit and Stop-Loss to Take Effect and Operational Impacts

1. The Quantity of Positions Available to Close Must Be Greater Than 0

Take-profit and stop-loss orders take effect only for the portion of the position with a quantity greater than 0 available to close.

If existing position-closing orders have occupied all positions available to close, meaning the available quantity is 0, the take-profit and stop-loss order will not take effect even if the mark price reaches the trigger condition, and you will not be able to set a new take-profit or stop-loss order.

For example:

You hold an ETH/USDT long position with an opening price of 2,000 USDT and set a take-profit at 2,100 USDT and a stop-loss at 1,900 USDT. You then submit a limit position-closing order at 2,200 USDT for the entire position.

At this point, all positions available to close have been occupied by the limit order, so the original take-profit and stop-loss orders cannot take effect. The limit order can still be executed only when the actual matching conditions are met.

2. Check the Settings Again After Cancelling an Order

Under the rules of this function, cancelling an order will clear the take-profit and stop-loss settings for the corresponding position.

This includes cancelling the position-closing order generated after a limit take-profit or stop-loss order is triggered; the original take-profit and stop-loss parameters will not be retained. If you wish to continue using them, set them again and confirm that they have been saved successfully.

3. Setting Take-Profit and Stop-Loss at the Same Time

When both a limit take-profit and a limit stop-loss are set, after either one is triggered, the system will use the entire quantity of positions currently available to close for the corresponding limit position-closing order.

Because this order occupies the positions available to close, the other side will become invalid. If the triggered order remains unfilled, the position may continue to be exposed to market risk.

4. Impact of Adding to a Position

When the original limit take-profit or stop-loss has not yet been triggered:

• If new take-profit and stop-loss settings are configured when adding to the position, the system will record the new settings.
• If no take-profit or stop-loss is configured when adding to the position, the original settings will remain unchanged.

After adding to the position, check the actual parameters in the position.

5. Impact of Reducing Margin on the Settings

When margin is reduced, the system will delete the stop-loss-related settings.

If a limit stop-loss has already been triggered and is in a pending order state, the system will cancel the stop-loss order. After the operation, check whether the stop-loss is still valid and reset it as needed.

7. Handling After a Limit Take-Profit or Stop-Loss Is Triggered

1. How Do I Manually Close a Position That Has Been Triggered but Not Executed?

You can use the following methods:

• Cancel the order first, then close the position: Find the corresponding limit position-closing order in “Current Orders”. After successfully cancelling it, submit a new position-closing order.
• Use Market Close All or Close All: Select the corresponding function on the Positions page and complete the operation according to the instructions on the page.

Market position closing is still affected by market liquidity and order execution conditions. After the operation, check the actual execution and remaining position.

2. How Do I Modify a Take-Profit or Stop-Loss That Has Been Triggered but Not Executed?

First cancel the corresponding position-closing order in “Current Orders”. After the order is successfully cancelled, set the take-profit and stop-loss for the position again.

3. How Do I Determine Whether I Can Set a Take-Profit or Stop-Loss?

Click “Close Position” and check the current quantity available to close in the position-closing window.

When the quantity available to close is greater than 0, you can set a take-profit or stop-loss. When it is 0, first check whether a position-closing order is occupying the position.

8. What Is Trailing Take-Profit/Stop-Loss?

Trailing take-profit/stop-loss is a position-closing order that dynamically adjusts its trigger price based on market price movements after activation.

Unlike ordinary take-profit and stop-loss orders, which use a fixed trigger price, trailing take-profit/stop-loss calculates the trigger price based on the highest or lowest price after activation and the retracement percentage you set. Once the trigger condition is met, the system submits a market position-closing order.

This function can be used to follow favourable price movements and attempt to close a position when a reverse movement of the specified magnitude occurs, but it does not guarantee locking in profits or avoiding losses.

Difference in price references:

• Ordinary take-profit/stop-loss: Currently triggered using the mark price.
• Trailing take-profit/stop-loss: Uses the latest traded price to determine activation and trigger conditions.

9. Trailing Take-Profit/Stop-Loss Parameters

1. Retracement Percentage

The retracement percentage is used to calculate the actual trigger price for trailing take-profit/stop-loss.

For example, if a long position is set with a retracement percentage of 5% and the highest price after activation is 50,000 USDT:

Trigger price = 50,000 × (1 − 5%) = 47,500 USDT

When the latest traded price falls to or below this trigger price, the system submits a market position-closing order according to the settings.

2. Quantity

Quantity is the order quantity for the market position-closing order after the trailing take-profit/stop-loss is triggered.

The quantity set cannot exceed the position quantity. If the position is occupied by other position-closing orders when the order is triggered, this may still affect order placement and execution.

3. Activation Price

The activation price determines when the system begins tracking the price and calculating the trigger price:

• Long position: Activated when the latest traded price reaches or exceeds the activation price.
• Short position: Activated when the latest traded price reaches or falls below the activation price.
• **Activation price left blank:** Activated immediately after being set.

Activation and triggering are different stages. Reaching the activation price does not mean that the position will be closed immediately.

10. Activation and Trigger Rules for Trailing Take-Profit/Stop-Loss

1. Trailing Take-Profit/Stop-Loss for a Long Position

Used to track the price during an upward movement and submit a sell position-closing order when the price falls by the specified percentage.

• Activation condition: Latest traded price ≥ activation price.
• Trigger price: Highest price after activation × (1 − retracement percentage).
• Trigger condition: Latest traded price ≤ trigger price.
• Action after triggering: Submit a market sell position-closing order for the configured quantity.

After activation, if a new high is reached, the trigger price will move up accordingly. When the price falls, the trigger price will not move down.

2. Trailing Take-Profit/Stop-Loss for a Short Position

Used to track the price during a downward movement and submit a buy position-closing order when the price rebounds by the specified percentage.

• Activation condition: Latest traded price ≤ activation price.
• Trigger price: Lowest price after activation × (1 ＋ retracement percentage).
• Trigger condition: Latest traded price ≥ trigger price.
• Action after triggering: Submit a market buy position-closing order for the configured quantity.

After activation, if a new low is reached, the trigger price will move down accordingly. When the price rebounds, the trigger price will not move up.

11. Trailing Take-Profit/Stop-Loss Calculation Examples

Example 1: Closing a Long Position on a Retracement

Assume that you hold a BTC long position and set:

• Retracement percentage: 5%.
• Quantity: 1 BTC.
• Activation price: Left blank; activated immediately after being set.

After the setting is configured, the latest traded price of BTC rises to a high of 100,000 USDT and then falls.

The trigger price is:

100,000 × (1 − 5%) = 95,000 USDT

When the latest traded price falls to or below 95,000 USDT, the system submits a market sell position-closing order for 1 BTC.

95,000 USDT is the example trigger price and does not represent the final execution price.

Example 2: Closing a Short Position on a Rebound

Assume that you hold a BTC short position and set:

• Retracement percentage: 5%.
• Quantity: 1 BTC.
• Activation price: 70,000 USDT.

When the latest traded price of BTC falls to or below 70,000 USDT, the order is activated. If the price then continues to fall to a low of 60,000 USDT, the trigger price is:

60,000 × (1 ＋ 5%) = 63,000 USDT

When the latest traded price rebounds to or above 63,000 USDT, the system submits a market buy position-closing order for 1 BTC.

63,000 USDT is the example trigger price and does not represent the final execution price.

12. Procedure for Setting Trailing Take-Profit/Stop-Loss in the App

1. Go to the “Positions” list and select the position to be configured.
2. Tap the edit button for “Take-Profit/Stop-Loss” or “Position Take-Profit/Stop-Loss”.
3. Select the “Trailing Take-Profit/Stop-Loss” tab in the pop-up window.
4. Enter the retracement percentage and quantity.
5. Enter the activation price as needed; if left blank, the order will be activated immediately after being set.
6. Check the parameters and confirm, then check the order status.
   
   

13. Precautions for Trailing Take-Profit/Stop-Loss

1. The position is not frozen before triggering. Please note that other limit position-closing orders or ordinary take-profit and stop-loss orders may occupy the positions available to close.
2. Successful order placement is not guaranteed. Order placement may fail at the time of triggering due to reasons such as the position being occupied.
3. Triggering does not equal execution. The market order generated after triggering still needs to be matched, and the actual execution price may be affected by slippage.
4. The position remains after a failure. If order placement fails or the order is not fully executed, the unclosed position still requires ongoing management.
5. Set the retracement percentage reasonably. The retracement percentage affects the trigger timing, so set it based on market volatility and your own risk tolerance.
6. Check the status after operating. Please continue to monitor orders, executions, remaining positions, and account risk indicators.

14. Risk Disclosure

Take-profit, stop-loss, and trailing take-profit/stop-loss are trading tools. They do not constitute a guarantee of returns and cannot guarantee that losses will be limited to a specified amount or price range.

Factors such as sharp market fluctuations, insufficient liquidity, position occupation, and system or network abnormalities may affect order triggering, submission, and execution. Please control leverage and position sizes reasonably, and continue to monitor margin and liquidation risks.

This document is intended to introduce the function mechanisms and operating procedures and does not constitute investment advice. The specific function entry points, parameter limits, order handling, and execution rules are subject to the actual SUNX trading page and official rules.

Thank you for your support and trust in SUNX.

SUNX Global Operations Team