Take profit/stop loss? How should I set it up so that I don't 'die' too badly?

Take profit and stop loss, as the name suggests, are used to help you set expectations for profits or losses in advance, allowing the trading platform to automatically close positions when these prices are reached. This is done to prevent the market from suddenly turning, leaving you unable to act and resulting in significant losses.
Take profit: When the price reaches the high point you set, the system will automatically help you sell, locking in profits.
Stop loss: When the price falls to the bottom line you set, the system will help you timely stop loss to avoid further losses.
However, the setting of take profit and stop loss not only looks at the latest price but also considers the "mark price".
What is the difference between the quoted price and the latest price?
Latest Price: This is easy to understand, it refers to the most recent transaction price in the market, which changes every second. If you are more focused on the real-time fluctuations of the market, you can usually use the latest price to set take profit/stop loss. In this case, as long as the latest transaction price reaches your set level, the system will automatically close your position for you.
Mark Price: The mark price is a bit complex; it is a smoother and more stable reference price calculated by the platform based on market prices, funding rates, and other factors. Its existence is to prevent unnecessary liquidations of your positions due to severe price fluctuations in a short period.
You can think of the marked price as the platform's "psychological price," which is generally more stable than the latest price. If you don't want to be "mis-killed" by short-term market fluctuations, you can refer to the marked price to set take profit and stop loss.
For example: You set a stop-loss order to sell when Bitcoin drops to 63200 USDT. If you set it using the latest price, the system will immediately sell for you when the latest price hits 63200 USDT. However, if the market suddenly experiences a significant fluctuation, you might get liquidated earlier than that price. If you set the stop-loss using the mark price, it can actually be more stable during large fluctuations, avoiding being washed out by some "false dips."
Opening a position, closing a position, going long, going short, feeling dizzy?
These are all terms used in trading. In fact, it's quite simple; let's break it down to understand:
Opening a position: Opening a position means establishing a new position, deciding to buy or sell.
Going long: You expect the price to rise, so you buy an asset (such as Bitcoin), and then sell it after the price increases. This is going long.
Short Selling: You are bearish and believe that the price will drop, so you first borrow the asset and sell it. When the price drops, you buy it back to return it; this is short selling.
Closing position: Simply put, it means to end your existing position. Closing a long position means selling what you bought, while closing a short position means buying back what you borrowed and sold.
What does funding rate/countdown mean?
The funding rate is a unique mechanism of perpetual contracts, where long and short positions pay each other a fee every 8 hours. If the rate is positive, it means longs pay shorts; if the rate is negative, it means shorts pay longs. This is actually a way for the platform to adjust market supply and demand and prevent the market from leaning too much in one direction. 🅱️iya is the world's first multi-asset trading wallet, which allows for easy real-time conversion of mainstream fiat currencies into digital currencies. It also provides secure and convenient withdrawal solutions, effectively addressing issues related to freezing and capital withdrawal. Users can easily convert to cash and withdraw through the U platform.
The countdown refers to the time for the next funding rate settlement. When the countdown ends, if you hold a position, you will either pay a fee or receive a fee, depending on whether you are long or short.
After listening to my rambling for so long, you might have gained some new insights into contract trading. Although it seems attractive, the risks are equally huge. Leverage gives you the chance to make a big profit with a small investment, but it could also leave you with nothing.
Therefore, trading cautiously and implementing effective risk control is the key.