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Download APKMaster Take Profit & Stop Loss mechanics to protect your trades | Updated April 2026
TPSL (Take Profit / Stop Loss) is Binance Futures' built-in conditional order system for position management. It lets you pre-set two price thresholds for an open position: a take profit target and a stop loss floor. When the market price reaches either threshold, the system automatically closes your position.
The key distinction from a regular limit order is that TPSL is position-bound — it carries Reduce-Only logic, meaning it can only close your existing position, never open a new one. A regular limit order stays on the order book even after your position is liquidated, potentially creating an unwanted reverse position.
| Dimension | TPSL | Regular Limit Order |
|---|---|---|
| Bound to | Existing position (Reduce-Only) | Independent order book entry |
| Activation | Triggers only when price reaches threshold | Sits on order book immediately |
| After liquidation | Automatically cancelled | Remains active, may create reverse position |
| Best for | Position protection, locking profits | Active entry / exit |
Binance offers two price reference options for TPSL triggers. Understanding the difference is critical for avoiding unwanted executions.
Mark Price is calculated by Binance using an index of prices from major spot exchanges. It's designed to be resistant to manipulation and is the same price used for liquidation calculations. Mark Price smooths out short-term anomalies and is considered the more reliable trigger reference.
Last Price is the actual price of the most recent trade on the futures market. In liquid markets it stays very close to Mark Price, but during low-liquidity periods or sudden large orders, it can temporarily spike far from Mark Price.
Note: the trigger price is the activation condition only. The actual execution price (fill price) may differ due to slippage, especially with market orders during volatile conditions.
Stop loss protects you when the market moves against your position beyond a tolerable threshold.
When Mark Price is chosen as the stop loss trigger, temporary price spikes (wicks) on the Last Price won't fire your stop loss. Wicks are caused by single large orders or thin liquidity creating momentary anomalies that quickly revert. Mark Price, being a multi-exchange composite, won't move that sharply in a fraction of a second.
| Position | Stop Loss Zone | Trigger Condition | Action |
|---|---|---|---|
| Long (Buy) | Above liquidation, below entry | Price drops to stop loss level | Market/Limit sell to close |
| Short (Sell) | Below liquidation, above entry | Price rises to stop loss level | Market/Limit buy to close |
In Cross Margin mode, all available balance in your futures wallet serves as collateral for all positions. Unrealized losses from one position draw down your available balance and can affect other positions' liquidation thresholds. The liquidation price changes dynamically as your account balance fluctuates.
In Isolated Margin mode, you allocate a fixed margin amount to each position. Your maximum loss on that position is capped at the allocated margin. The liquidation price is fixed at the time you open the position and doesn't change unless you manually add margin.
| Factor | Cross Margin | Isolated Margin |
|---|---|---|
| Margin source | Entire account balance | Per-position allocation |
| Liquidation impact | Affects all positions | Only affects that position |
| Liquidation price | Changes dynamically | Fixed at open |
| TPSL precision | Harder to calculate buffer | Precise and predictable |
| Best for | Experienced multi-position traders | Beginners / high leverage |
A Trailing Stop dynamically adjusts your stop loss as the price moves in your favor, locking in progressively more profit. Combining it with TPSL gives you both a hard floor protection and a profit-maximizing mechanism.
Set a fixed stop loss via TPSL (maximum loss guardrail), then activate a Trailing Stop instead of a fixed take profit. As price moves in your favor, the trailing stop follows automatically, while your TPSL fixed stop prevents worst-case scenarios.
Use TPSL to take profit on 50% of your position at your first target. Let the remaining 50% ride with a Trailing Stop. This secures guaranteed profit while keeping upside exposure.
Reason 1 — Too close to liquidation: The price moved so fast that it skipped past your stop loss level and hit the liquidation price directly. System-forced liquidation took priority over TPSL. Fix: maintain 5%+ buffer between stop loss and liquidation.
Reason 2 — Wrong trigger type: You set Last Price trigger, but Mark Price never reached your stop loss level even though Last Price briefly dipped below it. Fix: switch to Mark Price trigger.
Reason 3 — Insufficient balance: Account balance fell below maintenance margin before TPSL triggered, causing automatic liquidation. Fix: maintain adequate balance or reduce leverage.
Reason 1 — Price spike with Last Price trigger: A wick (spike) momentarily hit your stop price on Last Price, but Mark Price never reached it and the price quickly recovered. Your stop fired unnecessarily. Fix: use Mark Price trigger to resist wicks.
Reason 2 — Stop too tight: Normal market volatility (ATR) exceeded your stop distance. Fix: use ATR to set realistic stop distances, giving your position room to breathe.
When TPSL triggers and executes as a market order, the fill price may differ from your trigger price. Slippage is higher during: late-night low-volume periods, extreme price movements, and less liquid trading pairs. For major pairs like BTC/ETH, slippage is generally minimal. For altcoins, consider using limit-price TPSL.
In extreme markets, price can gap — jumping directly past your stop loss trigger price without trading at it. Your TPSL will still trigger, but at a worse execution price than expected. This is unavoidable but uncommon except during major news events or exchange issues.
For very large positions, a market-order TPSL might not find enough liquidity at the trigger price, resulting in significant slippage across multiple price levels. Large positions should use limit-order TPSL with a tolerable worst-case price.
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Register Now Download Binance AppNo. TPSL remains active as long as the position exists. It cancels when: the position is closed manually, a liquidation occurs, you manually delete it, or a Trailing Stop triggers first.
Binance allows one TPSL pair per position (one TP + one SL). For scaled exits, use the Close by percentage feature manually, or combine with Trailing Stop for the remaining portion.
Market-order TPSL typically executes within milliseconds of triggering. Limit-order TPSL needs the market to reach your limit price, which may take longer or partially fill during fast-moving markets.
Yes. Click the TP/SL button on your position at any time to update the trigger prices. The new values take effect immediately, overwriting the previous settings.
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