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Stoploss

EDUCATION: Hedging vs Stoploss Some rookie traders frequently trade without a stop loss because they think they can avoid being stopped out by market swings or rollover. However, if the market moves against them, this technique could result in severe losses. In this article, we'll cover why trading without a stop loss is a bad idea and how stop losses can be used efficiently or, as an alternative, how to employ hedging techniques. What is a stop loss? A stop loss is an order that you place on your trading platform to automatically close your position at a certain price level if the market goes against you. For example, if you buy EUR/USD at 1.2000 and set a stop loss at 1.1950, you are limiting your potential loss to 50 pips if the price drops below that level. A stop loss can help you control your emotions and prevent you from holding on to losing trades for too long, hoping that the market will turn around. There are several reasons why trading without a stop loss is a bad idea, such as: 🔹 You expose yourself to unlimited risk. Without a stop loss, you have no exit plan and you are relying on your gut feeling or luck to close your trade at the right time. However, the market can be unpredictable and volatile, and sometimes it can move hundreds or thousands of pips in a matter of minutes or hours. If you don't have a stop loss, you can lose more than your initial investment and even end up with a negative balance in your account. 🔹 You increase your stress level. Trading without a stop loss means that you have to constantly monitor your positions and worry about every pip movement. This can be very stressful and exhausting, especially if you have multiple trades open at the same time. You may also experience fear, greed, anxiety, anger, frustration, and other negative emotions that can cloud your judgment and affect your trading performance. 🔹 You reduce your profitability. Trading without a stop loss can also reduce your profitability in the long run. By not cutting your losses short, you are letting them eat into your profits and reduce your win rate. You may also miss out on better trading opportunities because you are too focused on your losing trades or afraid to open new ones. Additionally, you may incur higher trading costs due to wider spreads, commissions, swaps, and slippage. How to use stop losses effectively? Effectively utilizing stop losses will help you increase your trading profits and stay away from the risks of trading without one. The following advice will help you use stop losses effectively: 🔹 Determine your stop loss level using technical analysis. You can use a variety of technical tools and indicators, including as support and resistance levels, trend lines, Fibonacci retracements, moving averages, volatility indicators, etc., to pinpoint areas where the market is expected to reverse or rebound. Depending on whether you are going long or short, you should set your stop loss just below or just above these levels. 🔹 Use risk management rules to determine your position size. You should always calculate how much money you are willing to risk on each trade and adjust your position size accordingly. A common rule of thumb is to risk no more than 1% or 2% of your account balance per trade. This way, you can limit your losses and preserve your capital for future trades. 🔹Use trailing stops to lock in profits. A trailing stop is a type of stop loss that moves along with the price as it goes in your favor. For example, if you buy EUR/USD at 1.2000 and set a trailing stop of 20 pips, your stop loss will move up by 20 pips every time the price moves up by 20 pips or more. This way, you can protect your profits and let your winners run. NB: In related ideas I have attached my publication on trailing stop loss and support and resistance for those who would like to know more on those topics If a trade is having a hard time using stop losses what they can do as an alternative is hedge there position. Similar to how stock traders will use stock options to hedge their risk in the markets. What is hedging ? Hedging is a trading strategy that involves opening a position opposite to an existing one, in order to reduce the risk of loss from unfavorable price movements. For example, if you are long on EUR/USD, you can hedge by opening a short position on the same currency pair. This way, if the price goes down, you can offset some or all of the losses from your long position with the profits from your short position. Why this and not a stop loss ? The reasons someone would do this is because a stop loss can be triggered by temporary price fluctuations that do not reflect the true market direction. This can result in premature exits and missed opportunities. Moreover, stop loss can expose you to slippage and gaps, which are situations where the market price jumps over your stop loss level and executes your order at a worse price than expected causing you to loss more that you anticipated. hedging your position protects you from those situations. By hedging, you can keep both positions open until you are confident about the market direction and close the losing one when the price starts trending in your direction again. Things to note: Though you have positions opened in both directions and in theory you should not lose any additional funds once you've initiated the hedge it is worth noting that you can still have fees both positive and negative from swap fees at rollover depending on the direction and the asset you are trading. I will be doing a post soon on heading as a stop loss as a standalone topic and also swaps and rollover.
Education
by ChristopherDownie
37
BTC/USDT short-term Targets and StoplossHello everyone, let's take a look at the 4H BTC to USDT chart as you can see that the price is moving right at the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $27,112 T2 = $27,475 T3 = $27,780 AND T4 = $28089 Now let's move on to the stop loss in case the market goes down further: SL1 = $26,783 SL2 = $26,493 SL3 = $26,257 AND SL4 = $26,036 Looking at the CHOP indicator, we see that there is a lot of energy for a new move, the MACD is on the verge of entering a local uptrend, while the RSI, after recovering, has a small increase with room for the price to go a little higher in the coming hours.
by cryptodailyuk
1
MATIC/USDT 1DInterval - Targets and Stop lossHello everyone, let's look at the MATIC to USDT chart on a one-day time frame. As you can see, the price is staying above the local uptrend line. Let's start with setting the support line and as you can see the first support on which the price is currently based is $0.89, if the support is broken then the next support is $0.87, $0.84 and $0.81. Now let's move to the resistance line, as you can see the first resistance is $0.91, if you manage to break it, the next resistance will be $0.93, $0.95 and $0.97. Looking at the CHOP indicator, we see that there is some energy left for the next move, the MACD remains in an uptrend despite the correction, while the RSI has a small rebound, but there is still room for the price to go lower.
M
by cryptodailyuk
4
Stop Losses: A Trader's Best DefenseIn a perfect world, every trade would go our way, but alas this is usually not the case. A stop loss is a risk management tool used by traders and investors to minimize their losses when trading. It is a predetermined price level at which a trader's position will automatically exit the market, causing the loss to be realized. Stop losses are crucial to any trading strategy, as they help traders limit their losses and stay disciplined. In this blog, we will look at what stop losses are, why they are important, how to set realistic stop losses, and five different examples of stop losses with a description of how to set the stop loss. What are Stop Losses? A stop loss is an order to sell a security when it reaches a particular price. It is a predetermined price level at which a trader's position will automatically exit the market, causing the loss to be realized. This means that if the price of the security falls to the stop loss level, the trader's position is automatically closed, and any losses incurred are limited to that level. Stop losses are essential because they help traders limit their losses and stay disciplined. Why are Stop Losses Important? Stop losses are important because they help traders limit their losses and stay disciplined. In trading, it is easy to become emotional and let your losses run. Stop losses help traders avoid this situation by automatically exiting the market when the price reaches a predetermined level. This ensures that losses are limited, and traders can move on to the next trade without being emotionally affected by the previous loss. Setting Realistic Stop Losses Setting realistic stop losses is crucial to any trading strategy. A trader needs to consider the volatility of the security, the trading style, and the risk-reward ratio when setting stop losses. The stop loss should be set at a level where the loss is acceptable but not too close to the current price level, as this may result in the stop loss being triggered prematurely. A stop loss should also not be set too far away from the current price level, as this may result in the trader losing more than they are willing to risk. Stop Loss Examples Below we will list five examples of setting effective stop losses. For consistency, we are going to use the same long stop loss example, but these same examples can be set for stop losses for short positions as well. Percentage-Based Stop Loss: A percentage-based stop loss is a stop loss that is set at a specific percentage below the purchase price. For example, if a trader wants to place a long at $0.088602 and sets a 0.5% stop loss, the stop loss would be triggered at $0.88160. For a short stop loss at 0.5%, you would add the value instead and have a 0.89035 stop loss. To set a percentage-based stop loss, the trader needs to determine the percentage they are willing to risk and place the stop loss order at that level. ATR-Based Stop Loss: An ATR-based stop loss is a stop loss that is set based on the average true range of the security. The average true range is a measure of volatility and is calculated by taking the average of the high and low prices for a particular period. To set an ATR-based stop loss, the trader needs to determine the number of ATRs they are willing to risk and place the stop loss order at that level. For a long stop loss, you would subtract the ATR times its multiplier from the current price. For a short-stop loss, you would add the ATR times its multiplier to the current price. The unique upside to this stop-loss style is the ATR accounts for market volatility which can aid your risk management and help set more appropriate stop losses. Using Moving Averages or Super Trend: Moving averages and super trend are technical indicators that can be used to set stop losses. Moving averages are calculated by taking the average price over a specific period, while the super trend is a trend-following indicator that uses the average true range to calculate the stop loss level. To set a stop loss using moving averages or super trend, the trader needs to identify the period and place the stop loss order at the appropriate level. The Moving Average or Supertrend can then act as a moving stop loss as it trails the price. 1. Moving Average: 2. SuperTrend: Donchian Channels: Donchian channels are a technical indicator that can be used to set stop losses. Donchian channels are created by taking the highest high and lowest low over a specific period and plotting them on a chart. To set a stop loss using Donchian channels, the trader needs to identify the period and place the stop loss order at the appropriate level. In the example below we use a more standard 20-period Donchian level to identify areas of lowest low interest that would be a good place for a stop loss. If we were setting a short order we would look to recent highest highs as potential stop-loss areas Conclusion Stop losses are crucial to any trading strategy, as they help traders limit their losses and stay disciplined. When setting stop losses, traders need to consider the volatility of the security, the trading style, and the risk-reward ratio. Stop losses can be set using many different techniques, including percentage-based, ATR-based, using moving averages or super trend, and Donchian channels. By setting realistic stop losses, traders can minimize their losses and stay disciplined, which is essential for long-term success in trading.
MEducation
by LeafAlgo
40
EOS/USD 1W. Basic trend. Potentials and manipulations.Here's the EOS/USD 1W Chart on Bitfinex(long history). Right now we can see the horizontal channel forming. In this channel harmonic pattern on daily TF formed and worked out the first target, which is the middle of this local horizontal accumulation channel, in terms of 1w TF. Now we're near the support of this channel 0.86$. Recently the big amount of EOS were deposited on the exchanges. Showed the classical potential manipulation - look. On the bottom we have the support zone. Also it's 0/61(16)$ zone which often acts as bottom. This 0.61$ zone is -25% from the current support which is basic percent for pulling out stop losses. Though, if the market gives an "opportunity" it can dump further. The global support is 0.5$. This is also a possibility. And if on the moment it's very scary - the price can drop up to 0.36, which is also -25% but from the main support 0.5$. It will be 0.36 $ zone. Still, the potential is very good. Shown the potential distribution(local distribution) zone on chart. Those are - 2.5$; 5$ and then maybe 15$ but probably not in this local cycle. You can potentially work martingale in this type of situation, which means buy more if price drops.
BITFINEX:EOSUSDLong
by TradingTsar
6
❗️USE STOP LOSS AND BECOME A BETTER TRADER❗️ 🟩STOP LOSS IS:A stop-loss order is an order that automatically closes a losing position once the price hits the pre-specified level. We usually calculate SL in pips, but there can be many ways to set it. It can be time based, percentage based or volatility based. For some investors SL is some piece of critical news, which alters their perception of the value of the asset. Regular stop losses can be many and varied too, for example trailing stop. Also, we sometimes move SL to entry after the half close to protect the gains and make our position risk free.However, all situations I listed above have one thing in common and it is the fact that the SL was used! 🟥Honestly, I am amused by the massive number of people who send me screenshots of their MT4 with several open trades on the same pair all of them without SL and with 90% of account lost. And they ask me what should they do? A great illustration of what is would take to recover from such a loss, is on the drawing above. With the 90% loss, you have only one tenth of the original account left. That means you need to make ten times more money than you have left just to recover your losses. 999% gain needs to be made just to have your old account back. It took you a day to blow it, and might take months to recover the losses. This is the brutality of the trading. The market is unforgiving and will punish you if you treat is without respect. If you are careless or if you make mistakes. The market always comes back to collect, waiting for the moment you drop your guard and relax for a second. Please always use Stop Loss, because, as it happens, it stops you from losing too much! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
7
Trailing Stop Loss Explained Trading orders known as "trailing stops" enable investors to control their losses while also perhaps locking in profits as a deal goes in their favor. An instruction to sell a security after it reaches a specific price is the same as a conventional stop-loss order, which is identical to a trailing stop. A trailing stop, on the other hand, has an extra feature that enables it to move with the security's market price rather than being fixed at a particular price. The stop-loss order will be triggered at a certain percent or dollar amount below the current market price when an investor sets a trailing stop. The trailing stop "trails" behind the market price of the security as it increases, retaining the same percentage or amount below the current price. The trailing stop stays in place if the market price drops further until it is activated by the predetermined percentage or dollar amount below the new market price. An investor may be able to secure their gains on a profitable trade by employing a trailing stop, as well as reduce their losses on a losing investment. It can be particularly helpful for traders who want to let their profits grow but also want to make sure they don't give back a significant portion of their earnings if the market swings against them. Technical analysis, which involves utilizing charts and indicators to examine historical price and volume data in order to spot patterns and make trading choices, is frequently used in conjunction with trailing stops. Several of the following indicators can be used as trailing stops: 🔹Moving Averages: The average price of a security over a given time period is calculated using moving averages. The stop loss can be set at a certain percentage or dollar amount below the moving average by traders who want to utilize moving averages as a trailing stop. The stop loss will go up with the moving average as the price of the security increases, helping to lock in profits. 🔹Technical indication known as the Parabolic SAR (Stop and Reverse) can be used to set a trailing stop. Based on the trend, it produces points on a chart that show where the stop loss should be placed. The SAR points get closer to the price as the trend continues, which can help safeguard gains and reduce losses. 🔹A technical indicator that gauges a security's volatility is called the average true range (ATR). By multiplying the ATR by a specific multiple (such 2 or 3), subtracting the result from the current price, traders can utilize the ATR to set a trailing stop. This will establish a stop loss that is modified based on the volatility of the security, assisting in protecting profits and limiting losses. 🔹Bollinger Bands: Bollinger Bands are a technical indicator that consists of a moving average and two lines that are plotted two standard deviations away from the moving average. Traders can use the upper or lower band as a trailing stop, depending on whether they are long or short on the security. As the price moves in the desired direction, the stop loss will move along with the upper or lower band, helping to lock in profits.
PEPPERSTONE:XAUUSDEducation
by ChristopherDownie
📈 The Trailing Stop Loss📍 What Is a Trailing Stop? A trailing stop is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price. A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trade if the price changes direction by a specified percentage or dollar amount. 📍Important Takeaways 🔹 A trailing stop is an order type designed to lock in profits or limit losses as a trade moves favorably. 🔹 Trailing stops only move if the price moves favorably. Once it moves to lock in a profit or reduce a loss, it does not move back in the other direction. 🔹 A trailing stop is a stop order and has the additional option of being a limit order or a market order. 🔹 One of the most important considerations for a trailing stop order is whether it will be a percentage or fixed-dollar amount and by how much it will trail the price. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
5
FOREX ORDER EXECUTION AND STOP LOSS Stop losses are a risk management tool that traders use to mitigate potential losses in volatile markets. However, understanding how stop losses work can be complex, especially when considering the different business models of brokers. The broker's business model can significantly impact the execution of a stop loss. Typically, brokers operate under one of two models: the A-Book mode l or the B-Book mode l. This might also be referred to as a non-dealing desk or dealing desk brokers. Under the A-Book model (Non dealing desk), a broker routes orders directly to liquidity providers who source counterparties to take the opposite side of the trade. In contrast, the B-Book (Dealing desk/Market Makers) model involves executing orders in-house, making the broker the counterparty to all trades. While the A-Book model provides a neutral intermediary between traders and liquidity providers, the B-Book model can lead to a conflict of interest, as the broker profits from traders' losses. Furthermore, the A-Book model may not guarantee stop-loss execution since it relies on liquidity providers to fill orders. On the other hand, the B-Book model can lead to faster order execution, but at the expense of the broker's credibility. It's essential to understand the order execution process when placing a stop loss order. For example, when a trader inputs an order to buy or sell, the broker processes the order and returns execution information to the trader's terminal. However, the execution of stop losses is not always guaranteed since orders can experience slippage due to price movements or liquidity issues. It's worth noting that some brokers offer guaranteed stop losses, but at an additional cost. This guarantee ensures that traders are not responsible for any losses beyond their requested exit price. However, traders should weigh the costs and benefits of this option before utilizing it. In conclusion, stop losses are a critical tool for managing trading risk, but they are not foolproof. A trader's ability to exit a position at a specific price is subject to various factors, including the broker's business model and liquidity issues. To make informed decisions when placing stop loss orders, traders should research and understand the broker's order execution process beyond the liquidity provider. In a future post, we will dive deeper into order execution from the A-Book broker broker's perspective and explore how it impacts traders. We will also speak on STP and ECN processing. Stay tuned for more insights and information on trading practices and strategies.
BITSTAMP:ETHUSDEducation
by ChristopherDownie
ETH/USDT 4H - Targets and StoplossHello everyone, let's look at the 4H ETH to USDT chart as you can see that the price is moving in a local sideways trend channel. Let's start by setting goals for the near future that we can take into account: T1 = TADAWUL:2080 - $2094 T2 = TSE:2107 - HKEX:2118 T3 = HKEX:2135 AND T4 = TSE:2157 Now let's move on to the stop loss in case the market goes down further: SL1 = TSE:2072 SL2 = MYX:TDM AND SL3 = FSE:1999 Looking at the CHOP indicator, we see that there is still a lot of energy on the 4H interval, while the MACD indicator indicates a local downtrend. We see a rebound on the RSI, but the indicator is still in the upper limit, which may deepen the correction.
by cryptodailyuk
03/04/23 Weekly outlookLast weeks high: $29202.3 Last weeks low: $27844.3 Midpoint: $26486.3 From the volatility of the FED's FOMC announcement, the volatility has continued into last weeks price action in BTC. The 1H 200EMA had price ranging underneath it between the week low and the 0.25 quarter line. Once price had reclaimed 0.25 and had a successful retest, the 1H 200EMA was also reclaimed and a large rally followed. Since then the moving average has acted as support as it did for the previous week, this still remains one of the most important indicators for Bitcoins momentum. With last weeks price action beginning and ending at the midpoint of the weekly range, it's clear that there are slowing momentum concerns. That coupled with the wick up to $29200 to grab liquidity and stop out shorts from the double top of two weeks ago. I do think we are poised to retest 25.2k at some stage or another, it's a very key level that represents the top of the range we spent 9 months in, which is now the floor of our new range that reaches 32.5k. The potential for a bulltrap rally up near the ranges midpoint of 30-31k before retesting 25.2k would be my guess, however it is just that, a guess for now. I would like to see certain structure taking place before entering any trades that follows this narrative. For example an impulse rally above 29.2k that stops out shorts and squeezes higher before rejecting aggressively reaching 30.5-31k, I think this will get enough bulls excited to trap them for the dip down to 25.2k.
by ProR35
"G" did "U" see that?Gee, golly, did you see how long it took for this trade PEPPERSTONE:GBPUSD to exit drawdown. It was only this morning after a long week of drawdown, and a even longer weekend of backtesting, the results are in! We set our stop loss, and allow the market to work. I have officially earned my very first $100 ever on the markets. According to my trading journal, my account is now up 58.24% in the month of April. Although trading this pair was not the smartest decision of mine. Learning how to trade has been the best decision I have ever made. Once I started taking this seriously, I am starting to witness the small results start to show: from learning price action, risk management, and fundamental analysis. There are so many elements into a being a professional day trader, and I am here for it. The biggest lesson I learned from this trade, was not to be emotional in the drawdown. If I cannot afford to lose $100, I cannot handle earning $100. A second lesson I have learned is how to simply read candlestick patterns. Third and final lesson of the day, was how to identify a divergence, these lessons, are exactly WHY I entered, and held the trade as long as I did, but from now on, I will stick to my trading plan, get in, and get out! In conclusion, I'd like to share my trading journal entry.. DID I FOLLOW MY PLAN? Yes. I exercised my 5 step trading strategy. WHAT DID I DO WELL? 1. Set My Stop Loss (Take Profits) in profit. 2. Traded the pair in a new session. 3. Exercised good risk management, by setting a stop loss. WHAT CAN I DO BETTER? 1. Allow price to test my zone before I enter a trade. 2.Cut My Losses Short Early 3. Stick to trading in my selected session! (London) WHAT DID I LEARN? 1. Cut My Losses Short Early In The Future. 2. Patience and Virtue 3. How To identify a divergence. DID I PREPARE PROPERLY? NO, I entered a trade with a high lot size without reading fundamental analysis on the pair first. I also did not set my price, and wait for a confirmation.
Short
by Cashflowmarcofx
1
BNB/USDT 1DInterval Targets and StoplossHello everyone, let's look at the 1D BNB to USDT chart as you can see that the price is moving below the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $317.4 T2 = $322.8 T3 = $328.3 T4 = $336.1 AND T5 = $346.5 Now let's move on to the stop loss in case the market goes down further: SL1 = $305.9 SL2 = $396.1 SL3 = $282.8 AND SL4 = $265.1 Looking at the CHOP indicator, we see that there is still a lot of energy on the 1D interval, while the MACD indicator indicates that it will remain in a downtrend. The RSI indicates that it is trying to break out of a downtrend at the top.
by cryptodailyuk
UNI/USDT 4HInterval Targets and StoplossHello everyone, let's look at the 4H UNI to USDT chart as you can see that the price is moving above the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $6.11 T2 = $6.25 T3 = $6.45 AND T4 = $6.72 Now let's move on to the stop loss in case the market goes down further: SL1 = $5.99 SL2 = $5.89 SL3 = $5.82 AND SL4 = $5.75 Looking at the CHOP indicator, we see that there is still a lot of energy to move on the 4H interval, while the MACD indicator indicates entering a local uptrend. On the RSI, we can see an increase in the upper part of the range, despite the room for price increase, it is worth being careful.
by cryptodailyuk
What are the ways to profit from choosing an exchange wisely?Previously, we wrote about the free bonuses that exchanges provide us and how they ensure the speed of transactions and minimal slippage . In this idea we will talk about the interface of exchanges, the terminal and what are the main types of orders that should be on any terminal nowadays. An interface of a cryptocurrency exchange should be user-friendly. We won’t use any product or service which repels us by its “packaging” on first impression. So let's check the most common mistakes and so called red-flags that exchanges make in their interface: Cluttered Interface. This can make it difficult for us as users to navigate the exchange and find the information we need Poor Navigation. If we can't easily find what we're looking for, we're likely to become frustrated and leave the exchange. It's important for exchanges to have clear and intuitive navigation Lack of Mobile Optimization. You have already known all the importance of mobile-optimized interface. (Mobile devices were responsible for 43% of all cryptocurrency transactions in 2022) Confusing Terminology. Cryptocurrency can be complex, especially for newbies. It's important to use clear and simple language to help everyone understand the exchange Slow Load Times. Finally, slow load times can be a major issue for cryptocurrency exchanges. If we have to wait too long for pages to load, we are going to live very soon In a current market with many “players” it's hard to get a user with only a quality design and interface and here we come to another important point for traders - types of orders and options for it . It is important to have many different types because it allows us to execute trades in a way that best suits trading strategy and risk tolerance. Here is the list of the most popular and in the meantime significant ones: 1. Market order: buy or sell a given instrument at the market price. The price for these types of orders is defined as the best price available on the market at the point of time the order is being placed. Since the price changes constantly, the total price and fees are provided as estimates rather than exact values. 2. Limit order: execute a trade at a specified price or better (limit price). A Limit order to buy would be at the limit price or lower, and a Limit order to sell would be at the limit price or higher. Subtypes of limit orders: Good-Till-Cancelled - lasts until the order is completed or canceled. Day - automatically expires if not executed on the day the order was placed. Good-Till-Date/Time - automatically expires at the specified date and time. Fill-Or-Kill - must be executed immediately in its entirety; otherwise the entire order will be canceled Immediate-Or-Cancel - must be executed immediately. Any part of an IOC order that cannot be filled immediately will be canceled. 3. Scaled orders: you can set multiple orders at once. This lets you implement the most sophisticated trading strategies with ease. For example, if you'd like to consistently sell portions of some currency in case its price is increasing. Usually, you would have to create a whole lot of sell orders manually, specifying the desired amount, and the price each time. With Scaled orders, you can noticeably speed up this process. Now a little bit about options: A Stop-loss option on your orders helps with minimising risks attached to trading. This option is available for Market and Limit orders with a preselected Stop option, which ensures that your order will be placed as soon as the price reaches a certain value, called the Trigger price. A Take-profit option on your orders helps with consolidating your gains from trading. This condition is available for Market and Limit orders with a preselected 'Stop' condition — a condition that ensures that your order will be placed as soon as the price reaches a certain value, called the Trigger price. A Post only option ensures that your limit order will be added to the order book and not match with a pre-existing order. If your order would cause a match with a pre-existing order, your post-only limit order will be canceled. The 'Post' only option guarantees that you will pay the maker fee and not the taker fee unless matched with a hidden order. A Reduce only option enables you to create buy and sell orders meant to reduce an existing position without opening an opposite long or short position worth more than the current value of your leveraged assets. This essentially means that you will not be able to execute more than the size of your position, allowing you to trade without risking over-exposure of your assets. In conclusion, it’s crucial for you to choose exchanges that have a user-friendly interface and a variety of order types. It can help execute trades more efficiently and with greater precision, leading to a better overall trading experience. Thanks for reading! Write in a comment what other important points you pay attention to when choosing an exchange
CRYPTOCAP:BTCEducation
by Samura0x
5