Take Profit and Stop Loss Formula in Futures Trading

Article Summary

• Function of TP and SL: TP and SL work as an automatic mechanism to close a position at a predetermined price, whether at a profit or loss, so traders don’t need to monitor the market constantly.
• How to Set TP and SL: Effective TP and SL level setting combines technical analysis, such as support and resistance areas, with Risk Reward Ratio-based risk management to maintain discipline in trading.
• In Pintu Futures, TP and SL levels can be determined through three different input methods, ROI%, nominal PnL, and price change (CHG), each with different calculation references.

What are Take Profit and Stop Loss?

Take Profit (TP) is where an active position is automatically closed when it reaches a predetermined profit target, while Stop Loss (SL) is where an active position is automatically closed when the loss hits the maximum limit set by the trader. Both are important components of risk management, as they help traders calculate potential profits and losses before opening a position.

In practice, traders do not need to close positions manually, whether in profit or loss. Platforms such as Pintu Futures already provide TP and SL features that allow traders to specify certain price levels as a reference to close positions automatically.

The TP and SL features are actually not limited to futures, the spot market also supports their use. In the spot market, the risks are relatively more manageable as there is no leverage, whereas in futures, indiscipline can be far more fatal as even small price movements can magnify losses significantly. By setting TP and SL levels before opening a position, traders already have a clear plan.

Why are TP and SL Important in Futures Trading?

October 11, 2025 became one of the darkest dates in crypto market history. On that day, liquidations totaled $19.16 billion from both long and short positions, making it the largest liquidation event recorded to date based on Coinglass data.

This event is a stark reminder that there are still many traders who ignore risk management, one of which is by not placing SL orders before opening positions. Futures trading requires careful planning and more precise risk calculations, mistakes in both can lead to large losses and even liquidation of margins held.

Here are some reasons why TP and SL are so important in futures trading:

1. SL orders provide automatic protection according to the loss limit that the trader has set before the position is opened.
2. TP orders allow traders to estimate a realistic profit target from the entry price.
3. Traders who do not use SL orders have full exposure to market volatility and risk being liquidated.
4. Determining TP and SL levels requires traders to refer to both technical and fundamental analysis, so that position exit decisions are based on data, not speculation.
5. TP and SL orders form the habit of discipline in trading, when to take profits and when to limit losses are determined from the beginning.

Without TP and SL, traders do not have a clear reference as a target or maximum limit of loss on each position, so the potential for liquidation becomes much higher. In determining TP and SL levels, traders can use several approaches, for example based on the percentage of ROI, the nominal PnL in USDT, or price levels from technical analysis.

This feature is relevant for all types of traders, but it becomes especially crucial for active traders who open positions with high frequency. For this group, consistency in applying the risk limit per trade, which is closely related to the Risk Reward Ratio, is one of the foundations of a good trading strategy.

Find out how to use Risk Reward Ratio at Pintu Academy

TP and SL Formulas to Understand

The TP and SL formulas used by each exchange are not always the same, each platform has its own calculations. On Pintu Futures, traders can directly enter the TP and SL prices as a reference without the need to calculate any formulas. However, for traders who want to determine TP and SL levels based on percentage returns, nominal profits, or price movements, Pintu Futures provides an advanced mode with three different input methods.

Calculation Based on ROI (%)

Market Order TP/SL

The ROI percentage in Trigger Type is calculated based on the margin cost as a reference for profit or loss. Here is an example of the calculation:

• Entry Price: 76,000 USDT
• Position Value: 1,000 USDT
• Leverage: 5x → Margin: 200 USDT
• Margin Fee: 200 USDT (20% of position value)
• ROI TP: 20% → Est. Profit: 40.76 USDT (+4.12% of position value)
• ROI SL: -5% → Est. Loss: -10.20 USDT (-1.03% of position value)

The estimated profit and loss percentages shown are both calculated from the position value, so a 20% ROI results in an estimated profit of 40.76 USDT and a -5% ROI results in an estimated loss of 10.20 USDT.

Limit Order TP/SL

In Limit mode, there are two sections that need to be filled in: Trigger Price as the point to trigger an order using either Mark Price or Last Price, and Limit Price as the reference for position execution. The formula used to calculate the Limit Price is identical to the formula in Market mode, the only difference is the execution mechanism.

• Entry Price: 76,000 USDT
• Position Value: 1,000 USDT
• Leverage: 5x → Margin: 200 USDT
• ROI TP: 20% → Price Limit: 79,135.8 USDT → Est. Profit: 40.76 USDT (+4.12% of position value)
• ROI SL: -5% → Price Limit: 75,216 USDT → Est. Loss: -10.20 USDT (-1.03% of position value)

The Trigger Price in Limit mode is manually set by the trader and serves as the price to trigger the order, once the price hits that level, the system will place a limit order at the calculated Limit Price.

Price Change (%)

Market Order TP/SL

The CHG percentage in Trigger Type is calculated based on the price movement directly from the entry price. Example of calculation:

• Entry Price: 76,000 USDT
• Position Value: 1,000 USDT
• Leverage: 5x
• CHG TP: 10% → Trigger Price: 83,600 USDT → Est. Profit: 98.80 USDT (+10.00% of position value)
• CHG SL: -5% → Trigger Price: 72,200 USDT → Est. Loss: -49.40 USDT (-5.00% of position value)

A 10% input means the price needs to move 10% from the entry price to reach TP, and -5% means the price drops 5% from entry to hit SL. The percentage of estimated profit and loss in this Trigger Type are both calculated from the position value.

Limit Order TP/SL

Traders can specify a Limit Price or a percentage of price movement from the entry price to set TP/SL levels through the use of limit orders. In this type of order, the Trigger Price is also the trigger to activate the order.

• Entry Price: 76,000 USDT
• Position Value: 1,000 USDT
• Leverage: 5x → Margin: 200 USDT
• CHG TP: 10% → Price Limit: 83,600 USDT → Est. Profit: 98.80 USDT (+10.00% of position value)
• CHG SL: -5% → Price Limit: 72,200 USDT → Est. Loss: -49.40 USDT (-5.00% of position value)

Nominal PnL (USDT)

Market Order TP/SL

In the PNL Trigger Type option, traders can directly specify PNL in USDT or enter the Trigger Price. Here is an example of the calculation:

• Entry Price: 76,000 USDT
• Position Value: 1,000 USDT
• Leverage: 5x
• PnL TP: 100 USDT → Trigger Price: 83,692.3 USDT → Est. Profit: 100 USDT (+10.12% of position value)
• PnL SL: -50 USDT → Trigger Price: 72,153.8 USDT → Est. Loss: -50 USDT (-5.06% of position value)

This method is most intuitive for traders who are accustomed to setting TP and SL in USDT, just specify how much USDT you want to get as a profit target and how much USDT you are willing to lose as a loss limit, the Pintu system will calculate the trigger price automatically.

Limit Order TP/SL

Traders can directly input the USDT amount or set the Limit Price as the reference for the TP/SL Limit Order, and then set the Trigger Price to trigger the order.

• Entry Price: 76,000 USDT
• Position Value: 1,000 USDT
• Leverage: 5x
• PnL TP: 100 USDT → Price Limit: 83,692.3 USDT → Est. Profit: 100 USDT (+10.12% of position value)
• PnL SL: -50 USDT → Price Limit: 72,153.8 USDT → Est. Loss: -50 USDT (-5.06% of position value)

How to Determine TP and SL Levels from Support & Resistance on Pintu Futures

Technical analysis can help traders determine entry and exit areas based on support and resistance levels. From these levels, traders can adjust the placement of TP and SL so that the risk per trade remains measurable according to the risk management plan.

For example, based on the chart above, there is a repeated rejection on BTCUSDT-PERP at the 78,000 USDT area that occurred several times. This pattern is often a signal for traders to open short positions by making the resistance area as an entry reference. Here are the position details:

On Pintu Futures, traders can directly enter TP and SL prices along with the order entry using the limit/market order feature. Once all levels have been set, traders can simply press the “Sell (Short)” button to place the entire order at once.

Alternatively, if you want to set TP and SL based on the USDT amount using the advanced mode, traders can select the PnL Trigger Type.

Based on the established risk management example, traders can enter the USDT amount as TP and the loss limit as SL, then adjust the Trigger Price with the TP and SL levels determined from the previous analysis. Then, select “Confirm”.

After “Confirm”, traders can select “Sell (Short)” and this section will appear for final confirmation before placing the order.

Once the order is confirmed, traders can monitor the TP and SL that have been installed in the “Open Order” section. In the example, there are two active orders, Take Profit with Mark Price ≤ 72,300 USDT and Stop Loss with Mark Price ≥ 79,800 USDT, both of which will be executed automatically at market price once the trigger condition is met.

Conclusion

Take Profit and Stop Loss are two risk management instruments that cannot be ignored in futures trading. By understanding their calculation formula and how to determine their levels based on technical analysis, traders can build a more measured, disciplined trading plan and avoid decisions driven by emotions alone.

Frequently Asked Questions (FAQs)

What are tp and sl formulas in futures trading?

TP and SL formulas are calculations used to determine the Trigger Price based on three input methods: ROI%, nominal PnL in USDT, or price change (CHG%). Each method has a different calculation reference but produces the same output, which is the price at which the position will be automatically closed.

How to calculate take profit and stop loss from the entry price?

TP and SL calculations refer to the entry price as the reference point. Using ROI% Trigger Type with the formula Entry × (1 + ROI% ÷ Leverage) for long positions, or Entry × (1 – ROI% ÷ Leverage) for short positions. On Pintu Futures, the platform calculates the Trigger Price automatically after a trader enters the desired ROI%, PnL, or CHG% value.

What is the difference between mark price and last price when setting tp/sl?

Mark Price is the average price calculated from several exchanges, so it is not easily affected by momentary price movements on one platform. Last Price is the last transaction price that occurred in the orderbook. The use of Mark Price at Trigger Price is generally more recommended for SL to avoid being triggered due to a price wick that only occurs momentarily.

Can the tp/sl be changed once the position is open?

Yes, TP and SL can be changed after the position is open as well as after the order is placed. On Pintu Futures, traders can edit active orders directly from the “Open Order” section by pressing the edit icon next to the order they wish to modify.

Trading Futures on Pintu Pro Web

Apart from accessing Pintu Futures through the app, you can also open long or short positions such as BTC, SOL, and more directly through Pintu Pro Web. On Pintu Pro Web, you can trade Futures and spot right away!

How to trade Crypto Futures on Pintu Pro Web:

1. Go to https://pintu.co.id/
2. Click the Open Pro on Desktop button at the top center.
3. Register or log in to Pintu Pro Web.
4. Go to the Futures section.
5. Trade BTC and other cryptocurrencies.

Disclaimer: All information presented in this article has been prepared for general educational and informational purposes. This content is not intended as investment advice, recommendations, solicitation to buy or sell certain crypto assets, nor the basis for financial decision making. Any investment decision is entirely the responsibility of the reader, taking into account their financial condition, investment objectives, and risk tolerance.