How do take profit and stop loss orders actually work in spot trading?

For a long time I misunderstood this. TP/SL orders "freeze" assets immediately upon placement, unlike conditional orders, where the funds are released until they are triggered.

The main trick: when you place a limit TP/SL, it may not be executed if the price bounces. Then the system will cancel the opposite order SL before it triggers - and you may end up without a hedge.

Example: Buy BTC for 40k USDT, simultaneously set TP at 50.5k and SL at 30k. The price jumped to 50k, TP triggered, but the limit order was not executed due to liquidity. At the same time, SL is already being canceled. If the price falls below 30k — you will be left alone with a loss.

The secret is to better use fish orders together with a purchase limit so that both orders are activated simultaneously after the main position is fulfilled.

Is there anyone who has already caught this?

**Interesting fact:** the price of the TP/SL order cannot exceed the limit corridor deviation (usually ±3% from the trigger price). This is a safeguard against manipulation.