How to Set Up Stop-Loss and Take-Profit on Bybit: Complete Guide

02Understanding Stop-Loss Orders

A stop-loss order is your safety net. When the market moves against your position and hits your stop-loss price, the order triggers and closes your position at the best available price.

Types of stop-loss on Bybit:
• Fixed stop-loss — Set at a specific price level
• Percentage-based — Close when loss reaches X%
• Trailing stop — Follows the price as it moves in your favor

Common stop-loss strategies:
• Place SL below support levels for long positions
• Place SL above resistance levels for short positions
• Use ATR (Average True Range) for volatility-based stops
• Never risk more than 1-2% of your account per trade

03Understanding Take-Profit Orders

Take-profit orders lock in your gains automatically. When the price reaches your target, the order executes and secures your profit.

Strategies for setting take-profit:
• Use resistance/support levels as targets
• Risk-reward ratio of 1:2 or higher (risk $100 to make $200)
• Scale out — take partial profits (e.g., 50% at first target, 50% at second)
• Use Fibonacci extensions for dynamic targets

Bybit allows you to set multiple TP levels, which is perfect for scaling out of positions gradually.

04How to Set SL/TP on Bybit — Step by Step

Here's how to set up stop-loss and take-profit on Bybit:

Method 1: During Order Entry
1. Open the trading panel on Bybit
2. Select your trading pair and direction (Long/Short)
3. Click the TP/SL toggle before placing your order
4. Enter your Take-Profit price and Stop-Loss price
5. Click Buy/Sell to place the order with TP/SL attached

Method 2: After Opening a Position
1. Go to your Positions tab
2. Click the TP/SL column for your open position
3. Enter your desired TP and SL levels
4. Confirm the settings

Bybit also supports trailing stop orders that automatically adjust your stop-loss as the price moves in your favor.

05Common Risk Management Mistakes

Avoid these costly errors:

1. Not using stop-losses at all — The #1 mistake. Every trade should have a stop-loss.

2. Setting SL too tight — Normal market volatility will stop you out prematurely. Give your trades room to breathe.

3. Moving your stop-loss further away — This defeats the purpose. If your analysis is wrong, accept the loss.

4. Ignoring risk-reward ratio — Always aim for at least 1:2. Risking $100 for a potential $50 gain is a losing strategy long-term.

5. Over-leveraging — High leverage reduces your margin for error. Start with 3-5× until you're consistently profitable.

6. Not adjusting for volatility — A 1% stop on BTC is different from a 1% stop on a low-cap altcoin.

06Advanced: Position Sizing Formula

Professional traders calculate their position size based on risk:

Position Size = (Account Balance × Risk %) / (Entry Price − Stop-Loss Price)

Example:
• Account: $10,000
• Risk per trade: 1% = $100
• Entry: $50,000 (BTC)
• Stop-loss: $49,500
• Risk per unit: $500
• Position size: $100 / $500 = 0.2 BTC

This ensures you never risk more than 1% of your account on any single trade. Bybit's calculator tool can help you compute this automatically.

07Start Trading Smarter on Bybit

Proper risk management separates profitable traders from the rest. Start using stop-loss and take-profit orders on every trade — your future self will thank you.

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