Hi,
I have a question regarding the STOP_LOSS… and TAKE_PROFIT… order types. I understand the idea behind a STOP and STOP_LIMIT order - depending on the position you hold, long or short. But I’m not sure if I understand the concept behind STOP_LOSS and TAKE_PROFIT orders - specially if I hold a short position.
Let’s assume I bought a BTC for 30k. Now it is trading at 30.5k The I can place a SELL - TAKE-PROFIT order at 30.6k and a SELL - STOP-LOSS order at 30.4k? Both executions would bring a profit - depending on slippage either 400 or 600. But in this sample the take profit order is executed if the price rises from lower prices to higher prices, while the STOP-LOSS order is executed if prices goes down from higher to lower prices.
How do TAKE-PROFIT and STOP-LOSS work for short positions? will a TAKE-PROFIT order still get executed with prices rises? Or is it the opposite for short positions?
Why is it not just a STOP or STOP-LIMIT order together with a SELL or BUY direction - that way there would be no confusion about the use of the orders?
Another question: Can I use STOP-LOSS and TAKE-PROFIT to open a position or just to close a position? How would that work is I would like to open a long position? How does it look for a short position?
Is it correct to assume that a TAKE-PROFIT order will be triggered with prices rise from lower to higher - independent from BUX/SELL and if I already have a position or not? And STOP-LOSS orders will be triggered if prices fall from higher to lower prices?
Thanks.