> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ownit.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Take profit and stop loss (TP/SL)

> What TP and SL do, how to attach them, and how they differ from the account's breach level.

A take profit closes a position when price reaches a level in your favor. A stop loss closes it when price reaches a level against you.

## Account targets and breach levels

The evaluation rules apply to the whole account. The top bar shows To target and From breach; TP and SL apply to one position. They are different things:

| Level | Scope | Who sets it |
| - | - | - |
| Take profit / stop loss | One position | You |
| Breach price | The account: the price at which equity hits the nearer loss floor | The rules, from your open exposure |
| Target | The account: profit needed to pass | The rules |

## Take profit and stop loss

Set them in the Order panel when you place an order, or add them to an open position. Once set, they appear under the Orders and Positions section.
Both trigger on mark price. Once triggered, they fill as market orders at the average price available in the order book at that moment. The fill can be better or worse than your trigger level, and the gap is usually larger in a fast market or on a large position.

![OWNIT TP/SL dialog for a BTC long at 5x: take profit at 69,500 (+4.01%) and stop loss at 65,900 (−1.38%), each set by price or percentage on 100% of the position, with the closing fee and net P\&L each one would realize.](https://mintcdn.com/ftmo/ZHXLGSsKcnHl20He/images/tp-sl.webp?fit=max\&auto=format\&n=ZHXLGSsKcnHl20He\&q=85\&s=d103645515981a61ed34720241bb8bdb)

## Position management

Before and during a trade, decide two things: where this trade exits, and what its worst case does to From breach. A stop wider than From breach does not protect the account.

> [!WARNING]
>
> Leave room for slippage. A stop fills as a market order, so a stop whose loss uses all of From breach can fill past it and breach the account.

## Two layers

| Layer | Reads |
| - | - |
| Account | Target ↔ Equity ↔ Breach level |
| Trade | Entry → Position → TP/SL → Closed trade |

TP/SL manages the trade. Target and breach describe the evaluation.

> [card] [Rulebook](https://docs.ownit.xyz/resources/rulebook.md)
>
> How max loss, max daily loss, and profit target are measured, with a \$100,000 example.


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.