How do I set stop-loss and take-profit orders on Bybit?

Understanding Stop-Loss and Take-Profit on Bybit

Bybit is a popular cryptocurrency derivatives exchange that allows traders to manage risk through stop-loss and take-profit orders. These tools are essential for protecting capital and locking in gains without requiring constant market monitoring. Setting these orders correctly ensures that positions close automatically when price reaches predetermined levels.

1. Log into your Bybit account and navigate to the trading interface for the contract you wish to trade, such as USDⓈ-M or COIN-M futures.
2. Select either 'Limit' or 'Market' order type depending on how you want your entry executed before setting conditional exit orders.
3. After placing your entry order, locate the 'Stop-Loss' and 'Take-Profit' fields beneath the main order panel.
4. Input your desired price levels for both stop-loss and take-profit based on technical analysis or risk management strategy.
5. Choose whether to set these as 'Market' or 'Limit' orders upon trigger, with market execution ensuring faster closure during volatile conditions.

Key Settings for Conditional Orders

Bybit offers flexibility in how stop-loss and take-profit orders behave once triggered. Traders must understand the difference between trigger price types and order price types to avoid unexpected outcomes.

1. Trigger price can be set as either 'Last Price' or 'Mark Price,' which affects when the order activates. Mark Price helps prevent premature triggering due to short-term price spikes.
2. The order price can differ from the trigger price. For example, you may set a stop-loss to trigger at $30,000 but place the actual sell order at $29,900 to account for slippage.
3. Use the 'Advanced' option to set separate prices for trigger and execution, giving greater control over order behavior.
4. Enable 'Reduce Only' to ensure the stop-loss or take-profit only reduces an existing position and does not open a new one accidentally.
5. Confirm all settings before submission, especially when managing multiple positions or using leverage.

Managing Risk with Precision

Effective use of stop-loss and take-profit requires alignment with overall trading strategy. Many experienced traders incorporate position sizing, volatility indicators, and support/resistance levels when determining exit points.

1. Calculate risk per trade—typically no more than 1% to 2% of total equity—and set stop-loss distance accordingly.
2. Use recent price action to identify logical stop-loss placement, such as below key support for long positions or above resistance for shorts.
3. Set take-profit levels at realistic targets, often aligned with Fibonacci extensions, measured moves, or historical liquidity zones.
4. Consider trailing stop-loss options if available, allowing dynamic adjustment as price moves favorably.
5. Regularly review filled orders to assess performance and refine future setups.

Frequently Asked Questions

What happens if my stop-loss triggers but the market gaps past my order price?In fast-moving markets, especially during high volatility or news events, stop-loss orders may execute at worse prices than expected. This is known as slippage. Using stop-market orders increases the likelihood of execution but offers less price control compared to stop-limit orders, which may not fill at all if liquidity is insufficient.

Can I modify or cancel a stop-loss or take-profit after placing it?Yes, you can edit or remove conditional orders anytime before they are triggered. Navigate to the 'Open Orders' section, find the relevant stop-loss or take-profit entry, and click 'Edit' or 'Cancel.' This flexibility allows traders to adapt to changing market conditions.

Do stop-loss and take-profit orders work when my device is offline?Yes, these orders are stored on Bybit’s servers, not on your local device. Once set, they remain active regardless of whether your app is open or your internet connection is active. This ensures protection even when you're not actively monitoring the market.

Why didn’t my take-profit order execute even though the price reached my target?This can occur if the price briefly touched the level but didn't sustain it, or if the trigger price type (e.g., Mark Price) did not reach the threshold. Always verify which price feed your order uses and consider enabling notifications to monitor near-target behavior.