Take Profit and Stop Loss (TP/SL) orders are conditional risk management orders designed to automatically close positions when predefined trigger conditions are met.
In trading scenarios where multiple closing orders are active simultaneously, the execution of TP/SL orders may be affected by position availability when multiple closing orders exist simultaneously.
To help traders better understand how TP/SL orders are executed, Toobit is updating the TP/SL order execution mechanism. This update applies to both partial TP/SL and trailing TP/SL orders.
1. Current execution mechanism
When the trigger conditions for a TP/SL order are met, the system first checks your available position before executing the order.
To prevent the same position from being reserved by multiple closing orders, any portion of your position that has already been reserved by other closing orders (such as limit orders or trigger orders) is excluded from your available position. If the available position is insufficient when the trigger conditions are met, the order may be only partially executed or may fail to execute.
Example:
Assume you hold a 5 BTC long position in BTCUSDT with an entry price of 70,000 USDT. You have already placed multiple limit orders that reserve the entire position. You then place an SL order for the same position.
When the SL trigger price is reached, the system checks your available position. Since the entire position has already been reserved by existing closing orders, no available position remains for the SL order. As a result, the SL order may not be executed for the full position, or it may fail to trigger due to insufficient available position.
2. Updated execution mechanism
When the trigger conditions for a TP/SL order are met, the system will evaluate the order based on your total position size and execute the close order according to your current position and order status.
Triggered TP/SL orders are prioritized over other closing orders in the same direction. If the position available for closing is insufficient to fulfill the TP/SL order, the system will automatically identify and cancel unfilled closing orders that have reserved the position, such as limit orders and trigger orders, and cancel them one by one in order of creation (earliest orders are canceled first) until sufficient position becomes available for the TP/SL order to execute.
The updated execution rules are as follows:
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TP/SL orders are evaluated based on your total position size.
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Triggered TP/SL orders will take priority over other closing orders.
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If necessary, the system will automatically cancel unfilled closing orders in the same direction to release the required position.
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Orders are canceled in the order they were created, with older orders canceled first.
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TP/SL orders are prioritized whenever sufficient position is available.
Example：
Assume you hold a 5 BTC long position in BTCUSDT and have set a TP order to close 100% of the position. Before the TP order is triggered, you place an additional 3 BTC limit closing order, which remains unfilled and reserves part of the position. When the TP trigger price is reached, the system validates the order against your total position size. It then identifies and releases the position quantity reserved by existing closing orders, allowing the TP order to be executed against the full position size and close 100% of the position as intended.
3. Risk Disclosure
The execution of TP/SL orders may be affected by factors including market volatility, liquidity conditions, order types, system processing delays and network latency. Under extreme market conditions, partial fills, delayed execution, or incomplete execution may still occur. Traders are encouraged to fully understand how TP/SL orders work and use them appropriately based on their trading strategies and risk tolerance.
For more information about TP/SL orders that fail to execute after being triggered, please refer to Why is my TP/SL order triggered but not executed in Toobit Futures?
If you encounter any issues while using this feature, please contact Customer Support for assistance.
We will continue improving the trading experience and order execution mechanisms to provide traders with a more stable and reliable trading environment.
