LBank Perpetual Contract Take Profit and Stop Loss Tutorial

LBank's perpetual contract platform offers risk management tools like take profit and stop loss orders, allowing traders to automatically close positions based on predefined price levels.

Nov 26, 2024 at 09:34 pm

LBank Perpetual Contract Take Profit and Stop Loss Tutorial

Introduction:

Perpetual contracts, also known as inverse swaps, are a type of derivative instrument that allows traders to speculate on the future price of an underlying asset without owning the asset itself. LBank, a popular cryptocurrency exchange, offers perpetual contracts for a wide range of cryptocurrencies, including Bitcoin, Ethereum, and many others.

Take profit and stop loss orders are essential tools for risk management in perpetual contract trading. These orders allow traders to automatically close their positions when the price of the underlying asset reaches a specified level, thereby limiting their potential profits or losses.

In this tutorial, we will provide a step-by-step guide on how to set up take profit and stop loss orders on LBank's perpetual contract platform.

Step 1: Open a Perpetual Contract Trading Account

• Visit the LBank website and click on "Derivatives".
• Select "Perpetual" and click on "Trade Now".
• Choose the cryptocurrency you want to trade and click on "Create Order".
• Enter the desired leverage and order size.
• Click on "Buy Long" or "Sell Short" to open your position.

Step 2: Set a Take Profit Order

• Once your position is open, click on the "TP" (Take Profit) button.
• Enter the desired take profit price.
• Click on "Set TP".
• The take profit order will be placed and will automatically close your position when the price of the underlying asset reaches the specified level.

Step 3: Set a Stop Loss Order

• Click on the "SL" (Stop Loss) button.
• Enter the desired stop loss price.
• Click on "Set SL".
• The stop loss order will be placed and will automatically close your position when the price of the underlying asset reaches the specified level.

Additional Details:

Monitoring Your Orders:

• You can monitor your active orders by clicking on the "Open Orders" tab.
• This tab will show you the current status of your open positions, including the entry price, take profit price, stop loss price, and current unrealized profit/loss.

Adjusting Your Orders:

• To adjust your take profit or stop loss orders, simply click on the order and enter a new price.
• Your order will be updated automatically.
• You can also cancel your orders at any time by clicking on the "Cancel" button.

Trailing Stop Loss Orders:

• LBank also offers trailing stop loss orders, which automatically adjust the stop loss price based on the price movement of the underlying asset.
• To set a trailing stop loss order, select the "Keep Distance" option and enter the desired distance.
• The trailing stop loss order will ensure that your stop loss price is always trailing behind the market price by the specified distance.

Stop Loss and Take Profit Levels:

The appropriate take profit and stop loss levels for your perpetual contract trades will depend on your trading strategy and risk tolerance. However, a common approach is to set your take profit level at a point where you expect to make a significant profit, and your stop loss level at a point where your losses would be manageable.

It's important to note that stop loss orders do not guarantee that you will exit your position at the exact price you specify. In volatile market conditions, your position may be closed at a slightly different price.