The Conditional Close option allows traders to set up a second, opposite order that is placed only when the primary order executes. The Conditional Close feature is useful for "automatically" closing an open spot position on margin at a targeted profit or loss.
However, the Conditional Close cannot be used to set both a profit target and stop loss target at the same time. In other words, it is not possible to place “Combined” or “One-Cancels-the-Other” type orders using a Conditional Close order.
If you no longer want the Conditional Close associated with an open spot position on margin, you will need to manually cancel it from the list of Open Orders. Your Open Orders can be found by selecting Trade from the menu at the top of the page and then selecting the Orders tab.
On Kraken.com, the Conditional Close option can be found on the Advanced Order form.
On Trade.Kraken.com, there is a checkbox in the order form window labeled “Conditional Close”.
On the Kraken Pro mobile app, the Conditional Close option can be found by clicking on the new order button, selecting the three dots to display more options and scrolling down the bottom of the page.
A Conditional Close order can be set using the following order types:
✔️Limit (executes at a desired price or better)
✔️Stop Loss (triggers a market order when a target price is touched)
✔️Take Profit (triggers a market order when a target price is touched)
If price offsets are used instead of a specific price, the prices will be offset from the price of the primary order.
As soon as the limit order to buy 0.8 BTC/USD at $6,000 executes, the Conditional Close order to sell 0.8 BTC/USD with a Stop Loss order at a stop price of $5,800 would be placed.
The price does not go down to $6,000 to fill your limit order and instead increases directly to $6,400. Since the primary (order to buy 0.8 BTC/USD at limit $6,000) did not execute, the Conditional Close order was never placed and no orders have executed. The Conditional Close Take Profit order will only be placed if the primary limit order executes.
The price falls to $6,000 or below. As soon as the limit order to buy 0.8 BTC/USD at $6,000 executes, the Conditional Close order to sell 0.8 BTC/USD with a Take Profit order at a profit price of $6,300 would be placed. Now that the order has been placed, this Take Profit order will act like a regular Take Profit order -- it will execute as a market order once the last traded price reaches $6,300
The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.