Introduction to Enhanced Take Profit / Stop Loss (TP/SL)

For more details, please refer to the Reference Example and FAQ below.

Reference (1): TP/SL on the Entire Position - Increasing the Qty of position with an existing position

Scenario 1: New order with new TP & SL 
1. Trader A has an open long position of 10 BTC quantity with entire TP at $12,000 and entire SL at $8,000
2. Submitted new market long order of 1 BTC quantity with TP at $13,000 and SL at $7,000
3. Long position will have an updated quantity of 11 BTC with an updated TP at $13,000 and SL at $7,000

Scenario 2: New order with only TP or SL
1. Trader A has an open long position of 10 BTC quantity with entire TP at $12,000 and entire SL at $8,000
2. Submitted new market long order of 1 BTC quantity with TP at $13,000 and NO SL being set.
3. Long position will have an updated quantity of 11 BTC with an updated TP at $13,000 and no SL.

Therefore, with "TP/SL on the Entire Position" set as the Trading Preference, when traders place a new order to increase their position size and with the new order having an updated TP/SL set, the system will replace and update to follow the new TP/SL price accordingly.

Reference (2): TP/SL on Selected Positions - Increasing the Qty of position with an existing position

1. Trader B has an open long position of 10 BTC quantity
2. Pre-set 5 BTC of the position with TP at $12,000 and SL at $8,000
3. Submitted a new market long order of 1 BTC with TP at $13,000 and SL at $7,000 
4. After the new market long order is executed, trader B will have an open long position of 11 BTC quantity with
- 5 BTC with TP at $12,000 and SL at $8,000
- 1 BTC with TP at $13,000 and SL at $7,000

Therefore, with "TP/SL on Selected Positions" set as the Trading Preference, the TP/SL orders (if any) after adding more position will exist independently from the original position. If the increased position does not have a TP/SL order, the TP/SL orders of the original position may not be completely closed after it is triggered.

Reference (3): TP/SL on Selected Positions - Reducing the Qty of position on the existing position 

1. Trader C has an open long position of 10 BTC quantity
2. Pre-set 5 BTC of the position with TP at $12,000 and SL at $8,000, and another 5 BTC of the position with TP at $13,000 and SL at $7,000 
3. Trader C manually closed 6 BTC of the position
4. After the position is closed, Trader C will have 4 BTC of position with TP at $13,000 and SL at $7,000 as the first TP/SL set will be cancelled when a portion of the position is closed.  

Therefore, with "TP/SL on Selected Positions" set as the Trading Preference, the first (according to the earliest time the order is placed) TP/SL orders will be reduced first until it equals to the current existing Qty of position. 

Reference (4): TP/SL on Selected Positions - Effect on "Close by Limit" order after TP/SL has been triggered

1. Trader D has an open long position of 10 BTC quantity, pre-set 5 BTC of the position with TP at $12,000 and SL at $8,000, and another 5 BTC of the position with TP at $13,000 and SL at $7,000 
2. Submitted Close by Limit order to close 4 BTC of the position at $12,500 and another Close by Limit order to close 6 BTC of the position at $13,500
3. When trigger price reaches $12,000, the TP order is triggered and closed 5 BTC of the position. Trader D is left with an open long position of 5 BTC quantity.
4. Close by Limit order with furthest order price will be entirely cancelled. Trader still has an active Close by Limit order of 4BTC at 12,500.

Therefore, with "TP/SL on Selected Positions" set as the Trading Preference, after successfully executing a partial close with TP/SL order, if the remaining existing position Qty is lesser than the Close by Limit order Qty, the close by limit order with the furthest order price will be entirely cancelled first until the remaining Qty of Close by Limit order <= the Qty of the existing position.

FAQ
1. Why is my SL price the same with my liquidation price while I am choosing 50% SL?

This can happen when traders use the maximum leverage allowed. For example, BTCUSDT contract. Under the lowest risk limit level, the maximum leverage can be used is 100x. The initial margin required for 100x is 1% and the maintenance margin required is 0.5%. As we can see, maintenance margin required (0.5%) is 50% of the initial margin (1%). Therefore, traders can observe the scenario where the SL price=Liq price.

When mark price reaches the liquidation price, the position can still be liquidated despite the ROI% is only 50%.

Stop loss will only work if it is triggered before liquidation is triggered by mark price.

2. Why does the system allow traders to set a SL price that is worse than the liquidation price?

This is because different traders may have different strategies and Bybit does not want to restrict traders from this. Traders should check on the SL price of the position before confirmation to ensure the desired SL price is correct.

3. What happened to my TP/SL if my position size is more than 1 million USD, since the maximum quantity per order is 1 million USD?

Under the inverse contract, the maximum execution size per order execution is 1 million USD. When a stop loss order is triggered for a position size that is greater than 1million USD, the system will first submit a 1 million USD market order into the order book. After this order is executed, the system will submit another 1 million USD order or order with whatever remaining unclosed quantity (if the remaining unclosed position size is below 1million USD) to close off the position. This process will repeat for a maximum of 5 times or until the position is fully closed or liquidated whichever occurs first.

For any remaining unclosed position size after the “1+5” execution logic, traders will need to manually close it by submitting a new order. The same applies to USDT contracts, but please take note that the maximum quantity per order execution will vary according to the different trading pairs, which can be found from this article.

The above is only applicable to TP/SL on the entire position mode. It does not apply to TP/SL on selected position mode. There will not be any repeat submission and traders will have to manually submit multiple stop loss orders until the maximum closeable quantity is reached or when a maximum of 20 partial take profit or stop loss orders is submitted.

4. Why have I submitted an entire SL order, but only partial of my position is closed? I am in “TP/SL on the entire position” mode.

The above can happen under a very rare scenario where the Stop loss could not be fully executed at a price that is better than the bankruptcy price of the position upon triggered.

Assuming the position size is 6 million USD. On the first execution of SL (1+5 rules), only 0.5 million USD was filled while the remaining 0.5 million USD was rejected as the expected fill price is worse than the bankruptcy price. The system will continue to submit the next 1 million USD execution as per mentioned in FAQ No.3. The next 5 repeating order executions were fully filled. The total QTY closed by the Stop loss order will be 5.5 Million USD, and the trader will have to manually submit a new closing order to close the remaining 0.5 Million USD.

5. Why was my position liquidated despite having a SL?
The main reason is likely caused by the traders' selection of a different reference price to trigger the stop loss. For more details, please refer to this article.

6. The price charts did not hit the liquidation price of my position. Why was my position still liquidated?

Please note that Bybit is using mark price to trigger liquidation but not last traded price. For more details, please refer to this article.