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Introduction to the mechanism of setting and closing Futures positions with SL-TP
20/12/2022

Dear Nami Community,


The mechanism of setting and closing positions according to the Stop Loss and Take Profit (SL-TP) price is an effective tool to help users minimize risks when trading Futures on Nami Futures and NAO Futures. Let's learn about this mechanism as well as the latest updated regulations related to the SL-TP installation mechanism in the article below.


What is Stop Loss and Take Profit (SL-TP) price?

SL and TP are price points that are set or adjusted for each trading position, whereby when the market price touches or surpasses these price points, the position will be closed immediately and the user will receive a profit from positions corresponding to each price level.


SL-TP setting mechanism

At Nami, the SL-TP setting and closing mechanism is built to ensure that the position will close completely volume at the same pre-set SL-TP price.

To ensure the above mechanism, Nami stipulates a minimum distance between the trigger price of limit orders and the market price at the time of installation through the indicator as Price Range Ratio. (Limit orders include SL-TP, limit position orders, limit volume add orders...)

Minimum price gap = Price Range Ratio x Market price at the time of installation

For example: BTC/VNDC contract has a Price Range Ratio of 0.07%, the market price at the time of setting the trigger prices is 390,000,000 VNDC, then the minimum required price gap will be 390,000,000 x 0.07% = 273,000 VNDC. Users need to set activation prices with a minimum difference of 273,000 VNDC from the market price, which is not more than 389,727,000 VNDC and not less than 390,273,000 VNDC.

Currently, Nami has provided information related to the valid price for each activation price when users install it, details can be followed in the instructions below.


Important Notice:

  • SL-TP and related limit orders will be automatically closed when the user chooses to close the position manually.
  • SL-TP will not change when user adjusts the position's volume or margin, users need to reset new SL-TP prices according to their demands after making the above adjustments.
  • Users can adjust SL with positive profit or TP with negative profit depending on market movements and position status, if the adjusted prices are in accordance with the price gap regulations.
  • The price range ratio is constantly updated according to market movements and may soar in the event of extreme market volatility, users need to closely monitor this information to determine the appropriate limit order triggering price points when they want to adjust these price levels.
  • Updated minimum price gap ratio will not affect previously set SL-TP prices.
  • Users can monitor the details of the Price Range Ratios with each contract at the Trading Information interfaces or monitor this indicator of all contracts at the summary table of Trading Rules.

Instructions for installing and adjusting SL-TP with NAO Futures

Users can set and edit SL-TP prices at the order placement interface by entering the absolute price level, and have the option to pull the desired profit rate bar so that the system automatically determines the SL-TP price corresponding at the SL-TP Modify interface. When there is a price mark that is not suitable according to the price gap regulations, the system will inform the user about the details of the appropriate price point.


User can open detailed SL-TP Modify interface after selecting Leverage and entering Position Volume:


Adjust the SL-TP from the order placement interface or the SL-TP Modify interface:


Monitor the details of the Price Range Ratios with each contract:


Further information:


Best Regards,


Nami reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.


Risk Warning: Futures trading carries substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movements. The information here should not be regarded as financial or investment advice from Nami. All trading strategies are used at your discretion and your own risk. Nami will not be liable to you for any loss that might arise from your use of Futures.


About Nami Corporation

Nami Corp. is a FinTech startup operating in the field of Investment and Technology based on Blockchain technology. Over the years, Nami has developed an ecosystem of key products and services to comprehensively support investors, optimize community benefits with the slogan “Change mindset, make giant steps”.

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