What is a guaranteed stop loss?
Introduction : Guaranteed stop loss is a function that can help users effectively avoid trading slippage. When performing positioning stop loss, regardless of how the market fluctuates sharply, you can ensure that your positioning is always executed at your preset price to protect your trade and avoid unnecessary losses.
Applicable contract types : perpetual U-based contract, settlement U-based contract。All currency pairs are open. Please refer to the page showing the rate for each currency pair.
Applicable order type: Stop Loss Order Guaranteed Price (Guaranteed Stop Loss):
Ensure that the actual trading position squaring price of the trader is consistent with the pre-set stop loss price.
Special note:
Ensure that the stop loss function is a charged function, and Hotcoin will bear the risk of slippage on your behalf.
When you enable the guaranteed stop-loss function, the platform does not charge a fee in advance, but only charges a certain fee based on the transaction amount when it is triggered.
To help you understand the advantages of this feature, for example:
Three traders decided to open a long position of 1 BTC when the BTC market price was 66500 USDT. However, the flash crash caused the market price to quickly drop to 65475.5. Each trader had a different risk management strategy, resulting in different results for this trade.
Traders | A | B | C |
Stop loss mode | Market stop loss | Limit stop loss | Guaranteed stop loss |
Initial set stop loss price | 65850 USDT | 65850 USDT | 65850 USDT |
Actual stop loss price | 65475.5 | No | 65850 USDT |
final loss | 1024.5 USDT ([66500 - 65475.5] * 1) | Unknown | 650 USDT ([66500 - 65850] * 1) |
Case Analysis | Market stop-loss orders ensure that orders are executed as quickly as possible in the form of market orders, but do not guarantee the transaction price. Therefore, in the case of rapid market fluctuations, the user's order is ultimately executed at the market price of 65475.5. | Limit stop-loss orders are set with limit orders. In the case of sharp market fluctuations, if the market price quickly crosses our predetermined price, it will cause the order to not be fully matched and executed 100%. | Guaranteed stop-loss orders can ensure that your positioning is always squaring at your preset price position. Therefore, regardless of whether the market fluctuates greatly or there is a gap, the user's order will eventually be executed at 65850. |
The above instructions do not include transaction fees.
2.Guaranteed stop-loss rates and open coin pairs
Guaranteed stop loss currently only supports perpetual U-based contracts and settlement U-based contracts. The open currency pairs are shown in the table below.
Special instructions:
1. Hotcoin reserves the right to adjust the guaranteed stop-loss rate for corresponding trading pairs according to market conditions, or even stop providing guaranteed stop-loss services for trading pairs. Please refer to the data displayed on the trading interface for the latest list of applicable currency pairs and functional rates.
2. For users who maliciously use the guaranteed stop-loss function for arbitrage, it will be considered a violation and corresponding measures will be taken, including limiting the rate and variety of guaranteed stop-loss, and even stopping the relevant services of the contract function for the user
3. To ensure the user's experience when using the guaranteed stop-loss, the guaranteed stop-loss function will only be applicable to the stop-loss scenario, that is, the order needs to meet the following conditions: the stop-loss trigger price of the long position is less than the opening average price and the latest price or the stop-loss trigger price of the short position is greater than the opening average price and the latest price.
4. When the guaranteed stop function is enabled, if the mark price triggers both the liquidation price and the stop price, the liquidation will be prioritized and the guaranteed stop will be automatically cancelled. Please set the guaranteed stop price reasonably to increase the success rate of execution.
5. Please note that the price for enabling the guaranteed stop is the ‘latest price’ rather than the ‘mark price’.
Contract variety | Guaranteed stop loss rate |
BTC/USDT | 0.0100% |
ETH/USDT | 0.0100% |
3.How to start a guaranteed stop lossYou can set a guaranteed stop loss both at the time of opening and after opening a position. Simply click to enter the take profit stop loss interface and enable "guaranteed stop loss". Please note that after enabling the guaranteed stop loss, you need to enter the stop loss trigger price before submitting.
