Stop profit and loss, the offensive and defensive weapon in the cryptocurrency circle, the golden key to open the door to wealth
The currency circle is like an ocean, and it fluctuates from time to time, and our investors are like fishermen fishing out of the sea. When there are fluctuations, we are happy because there may be “fish” caught by us; but we are also afraid that the big waves will overturn our “boat”. Fortunately, the currency circle has measures to take profit and stop losses. Next, I will explain to you in detail what is Stop Profit and Stop Loss!
Stop-profit and loss function is that the trigger price, the commission price that triggered, and the order quantity are set in advance. When the latest price reaches the trigger price, it will hang up the order at the pre-set commission price.
Trigger price: when the “latest price” reaches the set “trigger price”, the “Stop-Profit” order will be triggered and completed.
Commission price: after the “Stop-Profit” order is triggered, the order will be placed at the commission price.
Quantity: “order quantity” after triggering.
Stop loss operation method:
Take ETH / USDT as an example: you buy 10 ETH at the price of 120 USDT to go long, and analyze the price near 110 USDT as the support level. If the price falls below the support level, it may continue to fall, and you need to stop loss in time. Place an order to sell 10 ETH when the price reaches 107 USDT.
Order method:
Direction: Sell
Trigger price: 110 USDT
Commission price: 107 USDT (the transaction price is subject to the latest market price)
Quantity: 10 ETH
Stop profit operation method:
Take ETH / USDT as an example: you buy 10 ETH at the price of 122 USDT to go long, and analyze the ETH price as a resistance level near 142 USDT. If the price breaks through the resistance level, it may continue to rise, but when the price reaches 152 USDT, place an order to sell 10 ETH.
Order method:
Direction: Sell
Trigger price: 142 USDT
Commission price: 152 USDT (the transaction price is subject to the latest market price)
Quantity: 10 ETH
Common problem:
1.Order placing: After you enter the trigger price, commission price, and quantity in the trading panel, and then click “Buy to open long” or “Sell to open short”, the popup window will prompt you to confirm again, unless you authorize Agree, otherwise the system will not issue Stop Profit and Stop Loss orders.
2. Enquiry: Stop-profit and stop-loss orders can be queried in “Stop-profit and stop-loss”. After the “stop-loss “ orders are “completed,” you can query records in the commission history.
3. Cancellation of order: Stop profit and stop loss orders can be cancelled before “all trades are made successfully”.
The setting of Stop Profit and Stop Loss should follow a certain method, rather than setting randomly. The stop loss cannot be too low. If it is too low, the market may immediately close the transaction if there is a slight shock, which wastes transaction costs. Stop profit should be slightly higher than stop loss, giving more opportunities and space for profit, so that you can achieve more revenue, what do you think?
