When we working in the futures market, it is essential that as soon as we open our position, define Stop-Loss that if the market wanted to do something contrary to the position we took and the analysis we had, with that stop loss, we get out of that position with a small loss to avoid the risk of liquidation.
There are two ways for us to do this; one is a Stop-Limit method and the other is a Stop-Market method.
The difference between these two methods is that we set the price ourselves in the stop limit method ,but in the case of a stop market, we can only set that condition, and the market sets the price instantly and our position closes according to that.
To define stop loss, we open a position and continue the work that is about stop loss. Here we close the position and we can have our sales order, but the important thing is to set stop loss, we start with ordering stop limit first. Given that the position we have taken is a long position, and it is in the direction of price growth that we can make a profit, we have to put a price lower than the purchase price. If we want to target sales, we have to do it at higher prices.