Kraken Pro Futures adds Take Profit/Stop Loss orders for improved risk management.

Risk management in cryptocurrency trading is not just a backup plan, it is a key strategic element. That is why we are excited to introduce a new Take Profit/Stop Loss order for Kraken Pro futures trading, which allows you to pre-define your exit point. ~ before You submit your order.

These orders, sometimes called “bracket” or “conditional*” orders, are a sophisticated way to enforce discipline, capture profits, and limit losses.

But what makes this product so popular among advanced traders is not just its functionality, but its ability to automatically turn strategies into action, allowing traders to sleep much more comfortably at night.

_{*To be really specific, this is an OTOCO command (One-Triggers-a-One-Cancels-the-Other), but it’s too long to explain!}

Understanding Take Profit/Stop Loss (TP/SL)

So that’s it, you ~ could In Kraken Pro, you already have separate Take Profit (TP) and Stop Loss (SL) orders set up, but Take Profit/Stop Loss orders are much more convenient.

This is an advanced conditional command that automatically executes take profit and stop loss orders simultaneously. Connected to the basic order. This automation ensures that regardless of market direction, an exit strategy is already in place to capture profits or mitigate losses at a predefined price point.

The important thing is that when TP or SL is triggered, the other orders are automatically canceled. You don’t have to worry about manually canceling them yourself. This feature is known as One Cancels the Other (OCO).

Using Take Profit/Stop Loss on Kraken Pro

Now, when you select a futures market on the web and mobile apps, you will find the Take Profit/Stop Loss options in the Kraken Pro order form widget.

1. Select trigger price:

• After selecting a gift market within the order form widget, you can set take profit/stop loss orders.
• Choose triggers based on market price, last price or index price, depending on your trading strategy and market analysis.

2. Set the paired distance and trigger price:

• Define the pair distance for TP and SL at the entry point. This simplifies the process of determining how far the target price is from the opening price. Alternatively, you can drag the order preview level on the chart to visually adjust the placement.
• Take advantage of the built-in preview feature to see the expected profit and loss scenario based on your specified settings.

Integrating TP/SL into your futures trading strategy

Here are some examples of how advanced gift traders use TP/SL:

1. Defining entry and exit points based on technical analysis
   • Kraken Pro traders use technical analysis indicators to develop their views on how the market will move before taking a position, and clearly identify an upside price target for the trade if the market moves in their favor.
   • Conversely, they also identify falling price levels at which their arguments become invalid.
   • Traders use TP/SL orders to set entry points with preset exit points based on the levels identified above.

2. Optimizing the risk-to-reward ratio
   • Traders tend to follow a strict risk-to-reward ratio for each trade setup.
   • They identify market structures that they believe provide good entry points.
   • Using the estimated PnL function from TP/SL, you can compensate for the risk you are willing to take on a trade by determining a % offset at entry to maintain a favorable risk to reward ratio according to your trading plan.

TP/SL provides Kraken Pro futures traders with optimized risk management to capture profits and mitigate losses. By utilizing TP/SL to pre-set exit points and evaluate the risk-to-reward ratio, clients can plan their strategies in advance. and Make sure all tasks are executed correctly, with just one request.

As always, our dedicated support team is here to answer your questions and provide guidance.