Why can't I use Limit Orders for take profit and stop loss?

Regarding our warning message: DO NOT use Limit orders for TP/SL, if you use Limit orders your balance will be blocked, so your SL will fail. Make sure you read the guides.

To eliminate any confusion, to set a stop loss or a take profit order, you must use a Stop-Market or a Stop-Limit order.

Why you cannot use a Limit Order as a stop-loss

For example, let's say you would like to sell a coin for $7 as a stop-loss when it is currently trading at $10. A limit order set at $7 would automatically sell at $10, due to the nature of the order type (which sells at the limit price or better). 

In order to avoid this type of manual error, you could use a Stop-Market order instead, which ensures that the trade will only be triggered once it hits $7. 

Why you should not use a Limit Order as a Take Profit order on CoinPanel

A Limit order, similarly on the exchange blocks your balance and does not allow you to set other orders with the same balance. This is a common limitation seen on exchanges, which only allows you to either set a Stop-Loss or a Take-Profit order after your Entry Order has been filled.

However, on CoinPanel, you have the added advantage of other order types that are not provided on exchanges, which allows you to Stop-Losses and Take-Profit orders at the same time without having your balance blocked.

In order to do so, your Take-Profit order must also be a Stop-Market Order, or a Stop-Limit Order, to ensure that your Stop-Loss order will also be active.