How to place a stop-loss order on OKX contracts?

Understanding Stop-Loss Orders in OKX Futures Trading

A stop-loss order on OKX is a risk management tool that allows traders to automatically close a position when the market reaches a specified price. This helps minimize potential losses if the market moves against an open position. In the context of OKX contracts, stop-loss orders can be placed for both perpetual swaps and futures contracts. The platform supports multiple types of stop-loss mechanisms, including trigger orders and conditional orders, which are activated when certain price conditions are met. It is crucial to understand that stop-loss orders are not guaranteed executions during extreme volatility, but they significantly improve control over risk exposure.

Accessing the Trading Interface on OKX

To place a stop-loss order, users must first access the OKX futures trading interface. Navigate to the official OKX website and log into your account. Once logged in, click on the 'Trade' tab located in the top navigation bar. From the dropdown, select 'Futures'. Choose the desired trading pair, such as BTC-USD-SWAP for the Bitcoin perpetual contract. Ensure you are in either cross margin or isolated margin mode, depending on your risk preference. The interface will display the order book, price chart, and order entry panel where you can configure your stop-loss.

Setting Up a Stop-Loss Using the Conditional Orders Tab

OKX allows users to place stop-loss orders through the Conditional Orders section. This feature is ideal for setting stop-losses that trigger when the mark price or last traded price hits a predefined level.

• Navigate to the 'Conditional Orders' tab beneath the main trading panel.
• Select 'Stop-Limit' or 'Stop-Market' as the order type. A Stop-Market order executes at market price once triggered, offering faster execution. A Stop-Limit order sets a limit price after triggering, which may not fill if the market moves quickly.
• Set the trigger price — this is the price at which the stop-loss activates. For a long position, this should be below the current market price. For a short, it should be above.
• If using Stop-Limit, define the limit price at which the order will be placed after the trigger.
• Specify the order size in contracts or base currency.
• Choose the trigger price type: Mark Price is recommended to avoid manipulation based on last traded price.
• Click 'Buy' or 'Sell' to submit the stop-loss, depending on your position direction.

Configuring Stop-Loss Directly in the Order Panel

Alternatively, OKX enables users to set a stop-loss when opening a new position using the advanced order panel.

• In the main order entry section, switch from 'Simple' to 'Advanced' mode.
• Place your initial open order (market or limit) for the desired position.
• Scroll down to the 'Take Profit / Stop-Loss' section.
• Toggle on 'Stop-Loss'.
• Enter the stop-loss price or set it as a percentage below (for longs) or above (for shorts) the entry price.
• Confirm whether the trigger is based on Mark Price or Last Price.
• Review the estimated liquidation price and margin ratio to ensure the stop-loss is set at a safe distance.
• Click 'Open Long' or 'Open Short' to execute the order along with the attached stop-loss.

This method ensures the stop-loss is linked directly to the position and appears under the Positions tab once active.

Monitoring and Managing Active Stop-Loss Orders

After placing a stop-loss, it is essential to monitor its status. Go to the 'Orders' section and select 'Conditional Orders' to view all pending triggers. Active stop-losses will show the trigger price, order type, and status (e.g., 'Not Triggered').

• To modify a stop-loss, locate the order and click 'Edit'. You can adjust the trigger price or order size.
• To cancel, click 'Cancel' next to the order.
• In the Positions tab, hover over your open position to see the attached stop-loss. Some stop-losses can be edited directly from this view.
• Be aware that reducing position size manually may proportionally reduce the stop-loss quantity unless adjusted separately.

Ensure your account has sufficient margin to avoid premature liquidation before the stop-loss triggers.

Common Mistakes and Best Practices

Traders often make errors when configuring stop-losses on OKX. One common mistake is setting the trigger price too close to the current market price, leading to premature execution due to normal volatility. Another issue is selecting Last Price instead of Mark Price, which can result in false triggers during flash crashes or spikes.

• Always use Mark Price as the trigger source to prevent manipulation.
• Avoid placing stop-loss orders at obvious technical levels where others may cluster, such as round numbers.
• Test your strategy in demo trading mode before applying it with real funds.
• Consider using trailing stop orders as an alternative for dynamic protection during strong trends.
• Double-check the leverage and margin mode before placing any order, as these affect liquidation risk independently of stop-loss.

Frequently Asked Questions

Can I set a stop-loss after opening a position on OKX?Yes. Go to the Positions tab, find your open position, and click 'Add Stop-Loss'. You can then define the trigger price and order type. This works for both isolated and cross margin positions.

What is the difference between Mark Price and Last Price triggering?Mark Price is a fair value estimate used to prevent liquidation due to market manipulation. Last Price is the most recent trade price. Using Mark Price for stop-loss triggers is safer and more reliable.

Why didn’t my stop-loss execute even though the price reached my level?This may happen if the trigger condition wasn’t met based on the selected price type (e.g., Mark Price didn’t reach the level). It could also occur if there was insufficient liquidity for a Stop-Limit order at your specified limit price.

Can I use a stop-loss with a take-profit order simultaneously?Yes. When placing an order via the Advanced panel or Conditional Orders, you can set both Take-Profit and Stop-Loss at the same time. Both are independent and will execute based on their respective triggers.