TL;DR: In futures, Take Profit (TP) and Stop Loss (SL) use different order types depending on your trade direction. For a BUY trade, TP is a SELL Limit above entry and SL is a SELL Stop below entry. For a SELL trade, TP is a BUY Limit below entry and SL is a BUY Stop above entry. These orders trigger on the BID or ASK price — not the last traded price shown on charts — and execution depends on available liquidity, so fills are not guaranteed.
Choosing the right order type for your Stop Loss and Take Profit is a core part of managing risk in futures trading. This guide explains which order types to use, how they're triggered, and why they may not always fill — so you can protect your account with realistic expectations.
Which order types are used for Stop Loss and Take Profit?
The order type depends on your trade direction:
Take Profit uses a Limit order (executes at your target price or better).
Stop Loss uses a Stop order (triggers once the market moves against you to your stop level).
Which side (BUY or SELL) you use flips depending on whether you're long or short — details below.
How do Stop Loss and Take Profit work in a BUY trade?
Take Profit (TP): place a SELL Limit at a higher price — to automatically close the trade when your profit target is reached.
Stop Loss (SL): place a SELL Stop at a lower price — to automatically cut your loss if the price drops.
Example: You BUY a contract at 4100.50.
To take profit at 4109.25 → place a SELL Limit at 4109.25.
To cut losses at 4098.25 → place a SELL Stop at 4098.25.
How do Stop Loss and Take Profit work in a SELL trade?
Take Profit (TP): place a BUY Limit at a lower price — to close the trade when the market falls to your profit target.
Stop Loss (SL): place a BUY Stop at a higher price — to exit if the market rises too far against you.
Example: You SELL a contract at 4100.
To take profit at 4098.25 → place a BUY Limit at 4098.25.
To cut losses at 4109.25 → place a BUY Stop at 4109.25.
How do I set Stop Loss and Take Profit using ATM?
Another way to set SL and TP is through ATM (Advanced Trade Management). When opening a trade, you can predefine your Stop Loss and Take Profit levels so they're placed automatically once the trade executes. You can choose standard order types like Limit (for Take Profit) and Stop (for Stop Loss), or more advanced types such as Stop Limit.
With a Stop Limit, you set a specific price ('x'), and the order can only execute at that price or better. If the market offers a worse price, the order won't trigger — which is why you may sometimes see that your SL or TP didn't close your trade even though the market appeared to reach your level.
Are Stop Loss and Take Profit guaranteed?
No — and this is one of the most common misunderstandings in futures trading.
SL and TP orders are not triggered by the last traded price shown on most charts. They rely on the BID or ASK price, depending on your trade direction:
BUY trade — your SL (SELL Stop) or TP (SELL Limit) triggers when the BID price reaches your level.
SELL trade — your SL (BUY Stop) or TP (BUY Limit) triggers when the ASK price reaches your level.
So even if the chart shows the price touched your level, your order may not execute unless the BID or ASK meets the condition.
Liquidity also matters. Even when the trigger price is reached:
Your order still needs a counterparty to fill it. For example, if your Take Profit is a SELL Limit and there are no active buyers at that level, the order stays pending.
This is more common during low-liquidity periods or high-volatility moments, such as news releases or market openings.
Why this matters for your FundedNext Account
Because fills aren't guaranteed, keep these FundedNext-specific points in mind:
Floating losses count toward your limits. If a Stop Loss doesn't fill during a fast move, your unrealized loss keeps growing — and floating losses count toward both your daily loss limit and Maximum Loss Limit, which can breach your account. Don't assume a stop alone fully protects you in volatile conditions.
News trading is allowed, but riskier. FundedNext Futures doesn't restrict news trading, but during news the market can move rapidly and your SL may not fill at your intended price. Trade news events with this in mind.
The market auto-closes at 3:10 PM CT. Any open position is closed automatically at the daily close, regardless of your SL/TP levels.
🔗 See: Daily Loss Limit and Maximum Loss Limit at FundedNext Futures
🔗 See: Are there any news trading rules for FundedNext Futures? (in the Most Frequently Asked Questions)
How do I place Stop Loss and Take Profit on my platform?
Now that you know which order types to use, here's how to set them up on each platform:
🔗 How to set and manage Stop Loss & Take Profit in Tradovate
🔗 How to set and manage Stop Loss & Take Profit in NinjaTrader
🔗 How to set and manage Stop Loss & Take Profit in TradingView