> For the complete documentation index, see [llms.txt](https://pacifica.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pacifica.gitbook.io/docs/support/trade-outcomes/my-tp-sl-did-not-execute-properly/how-do-tp-sl-limit-orders-work.md).

# How do TP/SL limit orders work?

## Stop-Loss (SL) and Take-Profit (TP) Limit Orders

Stop-Loss and Take-Profit orders are triggered by the **mark/last/mid price**. Once triggered, a limit order is placed to try close off your position.

***

### Long Positions

#### Stop-Loss (SL)

If you are long and set:

* **Trigger price:** $25
* **Limit price:** $25

When the mark price falls below $25, a **limit sell order at $25** will be placed.

If the market drops quickly from $26 to $23, your order may rest at $25 without filling.

If instead you set:

* **Limit price:** $22

The order has a higher probability of filling somewhere between $23 and $22 during a sharp move.

Lower limit prices increase fill probability but may result in worse execution.

***

#### Take-Profit (TP)

If you are long and set:

* **Trigger price:** $32
* **Limit price:** $31.50

When the mark price rises above $32, a **limit sell order at $31.50** will be placed.

This protects you from selling below $31.50 if the price quickly retraces after triggering.

***

### Short Positions

#### Stop-Loss (SL)

If you are short and set:

* **Trigger price:** $30
* **Limit price:** $30

When the mark price rises above $30, a **limit buy order at $30** will be placed.

If the market spikes rapidly from $29 to $33, your order may not fill.

If instead you set:

* **Limit price:** $34

The order has a higher probability of filling somewhere between $33 and $34 during fast upward moves.

Higher limit prices improve fill probability but may result in worse execution.

***

#### Take-Profit (TP)

If you are short and set:

* **Trigger price:** $20
* **Limit price:** $20.50

When the mark price falls below $20, a **limit buy order at $20.50** will be placed.

This ensures the order will not fill at a worse price (above $20.50) if the market rebounds after triggering.