How to Set Position Take-Profit and Stop-Loss (TP/SL)

3. Trailing Order

What Is a Trailing Order?

A Trailing Order helps traders limit losses and protect profits during market volatility. It places a preset order at a price that remains a specific percentage or amount away from the market price, allowing profits to be locked in as the price moves in a favorable direction.

When the market moves in your favor, the trailing price moves accordingly, maintaining the specified distance (percentage or amount) from the market price. This allows you to keep the position and continue to capture profits as the price advances.

However, if the price reverses by a specified percentage against your position, the Trailing Order will close/exit the trade at market price. This helps limit losses and protect profits when the price moves unfavorably.

Note that a Trailing Order does not move in the opposite direction. Therefore, you should set it at a level that reflects your risk tolerance and market conditions. In addition, a Trailing Order can be placed as a Reduce-Only order to decrease or close an existing open position.

How Does a Trailing Order Work?

You can place a Trailing Order when initially opening a position; however, this is not common among traders. Generally, traders add a Trailing Order after opening a position to manage risk and protect profits.

• If you open a long trade, you will place a trailing stop sell order above the current (initial) market price. As the price moves in your favor, the trailing stop price moves up by the specified percentage or amount. This means the trailing stop price will be adjusted upward as the market rises, forming a new trailing stop price. If the price then falls, the trailing stop stops moving. If the price reverses enough to hit the trailing stop price, a sell order is triggered at the next available market price to close the trade.

• If you already have an existing long position, you will place a trailing stop sell order below the current market price. As the market price rises, the trailing stop price moves up by the specified percentage or amount. If the market price reverses and falls below the trailing stop price, the sell order is triggered at the next available market price, closing the trade.

• A trailing stop buy order is the opposite of a trailing stop sell order.

• If you already have an existing short position, you will place a trailing stop buy order above the current market price. As the market price moves in your favor (down), the trailing stop price moves down by the specified percentage or amount. This means the trailing stop price will be adjusted downward as the market falls, forming a new trailing stop price. When the price rises, the trailing stop stops moving. If the price rises by more than the preset minimum pullback and reaches the trailing stop price, the system places a buy order and the trade is closed at market price.

Please note: To trigger a Trailing Order that exits at market, both conditions must be met: Activation Price and Callback Amount/Rate.

How Is a Trailing Order Triggered?

Two conditions must be satisfied to activate a Trailing Order.

A trailing stop buy order will be placed if the following are met:

• Activation Price ≥ Lowest Price

• Rebound Rate ≥ Callback Amount/Rate

A trailing stop sell order will be placed if the following are met:

• Activation Price ≤ Highest Price

• Rebound Rate ≥ Callback Amount/Rate

1. Callback Rate
   The callback amount/rate is the percentage of adverse movement you are willing to accept. The range is 0.1% to 10%, and you can set it manually in the “Callback Amount/Rate” field.

2. Activation Price
   The Activation Price is the price level at which the Trailing Order becomes active. If no activation price is set, it defaults to the market price (depending on the trigger source, this could be Last Price or Mark Price).
   — To place a trailing stop buy order, the Activation Price must be below the market price.
   — Conversely, to place a trailing stop sell order, the Activation Price must be above the market price.

3. Types of Trigger Source
   You can choose either Last Price or Mark Price as the trigger source. If you select Mark Price, the Trailing Order will activate when the Mark Price reaches or exceeds the Activation Price, even if the Last Price has not yet reached it.
   Please note that Hibt uses Mark Price to trigger forced liquidation and to calculate unrealized PnL. Mark Price usually stays close to Last Price, but during sharp volatility, Last Price may deviate significantly from Mark Price. Therefore, please monitor the spread between the Last Price and the Mark Price. You may cancel your order at any time; if you wish to switch the trigger source from Mark Price to Last Price, you can place a new order (and vice versa).

Important Tips

To keep a Trailing Order effective, the Callback Amount/Rate should be neither too low nor too high; the gap between Activation Price and market price should be neither too close nor too far.

• If the callback is too low or the Activation Price is too close to the market price, the trailing stop will sit too close to your entry and may be triggered by normal volatility. In that case, the trade has little room to develop before a meaningful trend forms, and may exit during a routine pullback, resulting in losses.

• If the callback is too high, the Trailing Order may only trigger during extreme market moves, exposing you to unnecessary large loss risks.

During high volatility, a higher callback is generally better; under normal market conditions, a lower callback is recommended.

There is no single best callback or activation price. Since markets constantly change, traders are advised to adjust their trailing stop strategy frequently. Always consider whether the trade aligns with your risk tolerance, experience, financial condition, and other relevant factors. In addition, set your callback and activation price according to your target profit level and your acceptable maximum loss.

Trailing Order Examples

(1) Trailing Stop Sell for a Long Trade

• BTCUSDT Perpetual, Last Price = 10,000 USDT

• Callback: 5%

• Activation Price: 10,500 USDT

• Trigger Source: Last Price

When the Last Price is 10,000 USDT, the initial trailing stop price is 9,500 USDT.
When price rises to 10,500 USDT, the new trailing stop price becomes 9,975 USDT = Last Price × (1 − Callback).
When price falls, the trailing stop price stops moving.
When price reaches a high of 11,000 USDT, the new trailing stop price becomes 10,450 USDT.
When price falls again, the trailing stop stops moving.
If price pulls back by more than 5% and reaches or exceeds 10,450 USDT, a Market Sell is executed to close the position.

Conditions met:

• Activation Price (10,500) < Highest Price (11,000)

• Rebound Rate (5%) ≥ Callback (5%)

Note:
Rebound Rate = (Highest Price − Rebound Price) / Highest Price
= (11,000 − 10,450) / 11,000 = 5%

(2) Place a Trailing Stop Sell for a Long Trade

• BTCUSDT Perpetual, Last Price = 10,500 USDT

• Callback: 2%

• Activation Price: 11,000 USDT

• Trigger Source: Last Price

Scenario A – Both conditions are met
Last Price rises from 10,500 to 11,500 (Highest Price), then drops to 11,200.
Since both conditions are met, the Trailing Order executes and a Market Sell is placed:

• Activation Price (11,000) < Highest Price (11,500) → condition met

• Rebound Rate (2.61%) > Callback (2%) → condition met

Note:
Rebound Rate = (Highest Price − Rebound Price) / Highest Price
= (11,500 − 11,200) / 11,500 = 2.61%

Scenario B – Only one condition is met
Mark Price surges from 10,500 to 11,500 (Highest Price), then drops to 11,450.
Because only one condition is met, the Trailing Order does not execute and no Market Sell is placed:

• Activation Price (11,000) < Highest Price (11,500) → condition met

• Rebound Rate (0.43%) < Callback (2%) → condition not met

Note:
Rebound Rate = (Highest Price − Rebound Price) / Highest Price
= (11,500 − 11,450) / 11,500 = 0.43%

(3) Trailing Stop Buy for a Short Trade

• BTCUSDT Perpetual, Mark Price = 10,500 USDT

• Callback: 3%

• Activation Price: 10,000 USDT

• Trigger Source: Mark Price

Scenario A – Both conditions are met
Mark Price falls from 10,500 to 9,500 (Lowest Price), then rebounds to 9,800.
Since both conditions are met, the Trailing Order executes and a Market Buy is placed:

• Activation Price (10,000) > Lowest Price (9,500) → condition met

• Rebound Rate (3.16%) > Callback (3%) → condition met

Note:
Rebound Rate = (Rebound Price − Lowest Price) / Lowest Price
= (9,800 − 9,500) / 9,500 = 3.16%

Scenario B – Only one condition is met
Mark Price falls from 10,500 to 9,900 (Lowest Price), then rebounds to 9,950.
Because only one condition is met, the Trailing Order does not execute and no Market Buy is placed:

• Activation Price (10,000) > Lowest Price (9,900) → condition met

• Rebound Rate (0.51%) < Callback (3%) → condition not met

Note:
Rebound Rate = (Rebound Price − Lowest Price) / Lowest Price
= (9,950 − 9,900) / 9,900 = 0.51%

How to Set and Cancel a Trailing Order

• In your Current Positions list, click TP/SL to enter the TP/SL settings page, then select Trailing Order.

• Enter the Callback Rate and Quantity.

• Set the Activation Price and choose Mark Price or Last Price. You may also leave the Activation Price blank; if not set, the order will be activated immediately upon placement.

• Click Confirm to complete the setup. You can view it under Trigger Orders → Trailing Orders and click Cancel Order to cancel the trailing order.