Why Would a "Less Favorable Limit Order" Be Filled at the Market Price?
To help users manage futures position risks more flexibly and lock in more profits when market conditions are favorable, NewCoin futures trading now supports the Trailing Stop feature.
Below is a functional description and detailed usage guide.
I. Feature Overview
A Trailing Stop is a dynamic stop-loss method. When the market moves in a favorable direction, the system automatically adjusts the stop-loss trigger price upward (for long positions) or downward (for short positions). When the market retraces and reaches the retracement threshold, the system will automatically execute a market order to close the position, helping users to:
Maximize the locking-in of unrealized floating profits
Reduce the need for constant manual monitoring
Automatically take profit or cut losses when the market trend reverses
II. Accessing the Feature (App)
Open the NewCoin App and go to the [Futures] trading page.
In your existing position list, tap [Take-Profit/Stop-Loss].
Select the [Trailing Stop] tab.
Set the parameters according to your needs and confirm to submit the order.
III. Trailing Stop Parameters
1. Activation Price The Activation Price is the trigger condition for the Trailing Stop order to become active.
The order is activated when the market's last traded price reaches or exceeds the Activation Price.
Only after activation will the system start dynamically calculating the actual trigger price.
If no Activation Price is set, the order is activated immediately upon submission.
2. Retracement Ratio The Retracement Ratio is used to calculate the actual take-profit/stop-loss trigger price and is the core parameter of the trailing stop.
Long Positions: Calculated based on the highest historical price since activation.
Short Positions: Calculated based on the lowest historical price since activation.
Example (Long Position):
Retracement Ratio: 5%
Highest Historical Price: 50,000
Actual Trigger Price = 50,000 × (1 − 5%) = 47,500
3. Quantity
Once triggered, the system will close the position using a Market Order.
Currently, Trailing Stop orders are only supported for the full position size.
IV. Activation Rules
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V. Example Scenario
Assume you hold a Long Position with the following settings:
Activation Price: 1,000 USDT
Retracement Ratio: 5%
Market Progression:
The market price rises to 1,000 USDT, and the Trailing Stop is activated.
The price continues to rise to 1,100 USDT.
The stop-loss price is automatically adjusted upward to 1,045 USDT (1,100 × (1 - 5%)).
When the price falls back to 1,045 USDT...
The system automatically triggers a market order to close the position, locking in profits upon exit.
VI. Important Notes
Once a Trailing Stop order is successfully set, the system will continuously monitor the market and dynamically adjust the stop-loss price.
If you manually close the position, reduce the position size, or modify the position before the order is activated or triggered, the Trailing Stop setting will be automatically canceled.
Trailing Stop orders use a market order trigger mechanism.
Under extreme market conditions or insufficient liquidity, the actual execution price may deviate from the expected price.
Please set the Activation Price and Retracement Ratio reasonably, taking market volatility into account.
For further assistance, please contact NewCoin Online Customer Support.
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