How to set conditional orders on Kraken: Stop loss and take profit
A stop loss automatically closes your futures position if price moves against you past a level you set, capping your downside without requiring you to watch the market.
A take profit automatically closes your position when price reaches your target gain, locking in the result without manual intervention.
Setting both together on Kraken Pro links them as a one-cancels-other (OCO) order: when one fills, the other cancels automatically.
Placing your stop loss above your liquidation price gives you a controlled exit and avoids the additional liquidation fee charged when the exchange closes your position forcibly.
Both orders can be modified or cancelled on any open position in Kraken Pro without closing the trade.
An introduction to conditional orders
Every open futures position needs two things before it becomes a plan: a level where you take profit, and a level where you accept the loss. Setting both takes thirty seconds on Kraken Pro. Skipping them is how a manageable loss becomes a liquidation.
Before reading this guide, make sure you understand how to place your first futures trade and how leverage works on Kraken. Conditional orders only make sense once you understand why they matter on a leveraged position.
What is a stop loss?
A stop loss is an order that automatically closes your position if price moves against you past a level you set. It caps your downside without requiring you to watch the market. If you open a long BTC futures position at $100,000 and set a stop loss at $95,000, your position closes automatically if BTC falls to that level. You take the loss you planned for, rather than waiting to see if it gets worse.
What does take profit mean?
A take profit automatically closes your position when price reaches your target gain level. If that same long BTC position has a take profit set at $110,000, Kraken Pro closes the trade when BTC hits that price. You lock in the gain without having to monitor your screen and decide in the moment.
How OCO (one-cancels-other) works
When you set both a take profit and a stop loss on the same position, Kraken Pro links them together as a one-cancels-other (OCO) order. When one fills, the other cancels automatically. You define both your target and your floor, then let the market decide which is hit first. It's quick and convenient with no manual cleanup required.
OCO logic is what makes conditional orders worth using on leveraged positions specifically. Without it, you'd need to manually cancel the remaining order after one side fills, which introduces timing risk and execution error. The OCO feature on Kraken Pro helps eliminate this.
How to set a stop loss and take profit on Kraken Pro
Step 1: Open the order panel on Kraken Pro and navigate to your futures market.
Step 2: Enter your position size and select your order type: market or limit.
Step 3: Expand the conditional order section and locate the Take Profit / Stop Loss toggle.
Step 4: Enter your take profit price, the level where you want to lock in gains.
Step 5: Enter your stop loss price, the level where you want to cap losses.
Step 6: Confirm. Both orders are set simultaneously and OCO logic is applied automatically.
Where to place your stop loss
There's no single correct answer, but there's a typical framework many traders follow.
A common approach is to place your stop loss above your liquidation price. If the price hits your stop first, your position closes at a predictable price and you pay only the standard trading fee.
If the price reaches your liquidation price instead, the exchange closes your position to avoid further losses. Many platforms may also charge an additional liquidation fee on top of the loss. Setting a stop above liquidation gives you a controlled exit and avoids that extra cost.
Some traders also use technical indicators showing support and resistance zones to set their stop loss orders. Regardless of the method used to determine placement, setting a stop loss before entering a trade is a marker of disciplined preparation. Experienced traders have their exit levels mapped out before they open a position, not after price starts testing their conviction. And it's this discipline that can be the difference between a positive or negative PnL.
To calculate your exact liquidation price before placing a trade, see how to calculate your liquidation price.
Can you change TP and SL after the position is open?
Yes. You can modify or cancel take profit and stop loss orders on any open position in Kraken Pro. In the open positions panel, select the position you want to edit and the conditional order fields are editable directly from there. Move your take profit target up if the trade goes your way, or tighten your stop loss if conditions change.
Read our guide to risk management for futures for more on managing open positions.
Start trading perps on Kraken
Perpetual futures are derivative contracts that allow you to speculate on the price movement of assets such as BTC, SOL and ETH, without needing to own the actual cryptocurrencies.
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Disclaimer
The educational material on this page is for information only and does not constitute an offer to trade futures. Kraken Futures is provided by a different licensed Kraken entity depending on where you live. Derivatives are complex instruments that carry a high risk of rapid losses due to leverage. You should not risk money you cannot afford to lose. Tax treatment depends on your individual circumstances and may change. Geographic restrictions may apply and can change without notice. Kraken products and services may not be covered by investor-compensation or deposit-protection schemes. Nothing on this page is investment, legal or tax advice. Access is subject to eligibility, local regulation and the Terms of Service for the legal entity you face.