How to Trade Smartly at the Best Cryptocurrency Trading Terminal with Advanced Tools?

by Trailing Crypto cryptocurrency experts

With crypto markets remaining open 24 x 7, automated trading strategies, and bot trading, cryptocurrency trading is gaining huge popularity among traders. But how can you trade like a pro?

Choosing the right cryptocurrency trading terminal is important. Many expert traders look for smart ways to simplify their trading experience while relying on the automated trading strategies. The crypto trading platform or trading terminal like TrailingCrypto provides advanced trading methods to traders to trade automatically using the right order types, copy trading, bot trading, signal trading, and more. There are countless ways to earn profits off of trading cryptocurrencies.

Technical analysis and financial analysis are important while building an expert strategy. Having a successful trading plan also mitigates risks, as it eliminates a lot of unnecessary decisions. Among several orders types, Trailing stops offer the best way to lock in profits and limit the losses. Trailing Stops only move once a new peak has been established. And, once they have moved up, it cannot move back down.

Trading with Trailing Stop Orders

A trailing stop order is a stop or stop-limit order where stop price is not a specific price. Instead, it’s either a defined amount or a percentage, above or below the current market price of the asset. As the price of an asset moves in a favorable direction, the trailing stop price adjusts or trails the market price of the asset by a specified amount.

But, if the price moves in an unfavorable direction, the trailing stop price will not change, and it will remain fixed. And, it will trigger an order, if the asset price reaches the trailing stop price.

Let’s have a look at how a trailing stop sell order is placed:

  1. Let’s say a trader buys a cryptocurrency XYZ at $50 per coin. 
  2. XYZ rises to $55
  3. You place a sell trailing stop order with a trailing stop price of $1 below the market price.
  4. As long as the price moves in your favor (i.e., increases, because here you are looking to sell it), your trailing stop price will stay $1 below the market price. 
  5. The price of XYZ peaks at $60 then starts to drop (not in your favor).  Your trailing stop price will remain at $56
  6. The coins will be sold when XYZ reaches $56, though the execution price may deviate from $56.

Before using a trailing stop order, traders should consider the following:

  • It’s important for a trader to select the trailing stop price carefully which they are using for a trailing stop order since short-term market fluctuations in an asset’s price can activate a trailing stop order.
  • As with stop and stop-limit orders, different trading platforms may have different standards for determining whether the stop price of a trailing stop order has been reached.  Some exchanges use only last-sale prices to trigger a trailing stop order, while others may use quotation prices.  So make sure to consider all these factors before placing trades.

TrailingCrypto is one such trading platform that allows its traders to use these order types and tools to avoid any kind of losses.

Trailing Limit Sell

Another important tool which the traders could consider while trading cryptocurrency is Trailing limit sell. A trailing limit sell order is the kind of advanced order that traders can use to avoid losing their money and maximizing their profits.

Trailing limit orders are different from trailing stop orders in some way. Stop orders immediately convert to market orders when the asset touches the stop price. For the limit order, the order converts to market order at the set price or better price.

Particularly, a trailing limit sell order is one where the limit sell order trails the market price of the particular cryptocurrency pair.

Let’s understand it with an example:

Suppose a trader places a trailing limit sell order on any exchange for XBT/USDT. Then, the trader sets the trailing gap at 10%.

Now, the limit sell order will always be 10% away from the market price of XBT/USDT.

 If the price of the crypto asset pair moves down, the trailing amount recalibrates. This way, the distance between the market price of the pair and the limit sell order remains 10%. If the pair increases in value, however, the limit sell price does not go down.

The Trailing limit sell order allows its traders to sell the crypto asset before the market fell too low. Let’s consider another example for this:

Say, the current market price of any XYZ asset is $100, the trigger price is $108, and the target sell is $106. There is a trail interval set at $0.10, once you define the trail, either the price moves down or moves up.

As the price moves down, it will move closer to the trigger price. If the market doesn’t move up and hits the trigger price, your Trailing limit sell order would be executed between $108 and $106. But if the price increases, your trigger price and target price will be updated. The more the market moves up, the more will be the trigger and target price. Thus, it ensures that you are selling at the highest price.

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About Trailing Crypto Advanced   cryptocurrency experts

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Joined APSense since, July 8th, 2019, From Gurgaon, India.

Created on Dec 14th 2021 10:39. Viewed 239 times.


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