Tips to Minimize Loses And Improve Profits in Crypto Trading
by Antonio Boston marketing managerWant to benefit from the
volatile cryptocurrency markets? Do you really want to minimize your losses and
protect your profits? If yes, then you must understand the most profitable
strategies and crypto trading tools.
So, you want to benefit as
the price of your crypto assets moves higher and you are willing to wait for
the gain, but you think that can’t happen immediately. While you are waiting,
the prices are moving up and down. It can be painful to see when a gain
evaporates and turns into losses. Now, you want to control your losses. But how
much and how can you do that?
Of course, that’s possible
with Trailing Stop Limit Order. This tool will give you some control over the
volatile movements in the market.
How
does a trailing stop limit order work?
A trailing stop limit order
is designed to allow a crypto trader to specify a limit over the maximum
possible loss, without setting a limit on the maximum possible gains. This is a
different kind of order which comes with a stop-limit trail interval for extra
downside protection. TrailingCrypto is one of the best crypto trading terminals
that allow its traders to place trailing stop order smartly and automatically.
This order type allows its
traders to set a Trigger Delta which is how much the price of crypto asset
could fall before you place a sell or rise before placing a buy order. You can
specify trigger delta as a percentage or amount. Once after setting the trigger
delta, TrailingCrypto continuously recalculates the price which will trigger
your order, based on the current market price of the asset as it moves in the
favorable direction. If the market price changes directions, your trigger price
won’t change.
Whenever your order is
triggered, the buying or selling of the crypto asset will be a limit order. You
will determine the limit price by specifying how far from the trigger price,
you will allow the buying or selling of the asset. This is called Limit Offset.
Trailing
stop limit sell
A trailing
limit sell order moves with the market price, and continuously
recalculates the trigger price at a fixed amount below the market price, based
on the user-defined trailing amount. The limit order price is calculated based
on the limit offset. As the price increases, both limit price and stop price
increase by the trail amount and limit offset. But if the price falls down, the
stop price will remain unchanged.
So, Trailing limit sell
order is one of the best crypto trading tools where the limit sell order trails
the market price of the cryptocurrency pair. Let’s understand it with an
example:
Suppose a trader places a
trailing limit sell order for XBT/USDT. Then, the trader sets the trailing gap or
trigger delta as 10%. Therefore, the limit sell order will always be 10% away
from the market price of XBT/USDT. If the pair moves from 9,500 to 9,400, the
trailing amount recalibrates.
This way, the distance
between the market price of the pair and the limit sell order remains 10%.
However, if the pair increases in value, the limit sell price does not go down.
How
can one place trailing limit sell order at TrailingCrypto?
·
Firstly, you have to choose the desirable
exchange
·
Click on the orders window, and select
Trailing Limit Sell
·
Once after specifying the order type, enter
the parameters. For example, you can choose the market as USD trading against
Bitcoin. Specify the quantity as 5 BTC or 10 BTC, or whatever you want. For the
offset, you may choose 10%. Now, it’s time to submit an order.
·
Now the submitted order will be displayed on
the order window.
Trailing
stop buy order
This order type is an exact
mirror image of the trailing stop limit sell order. It can be used to protect
profits generated through short selling or while you are trying to buy any
stock which is bouncing off due to market low.
Below are the steps to place
trailing stop buy order at TrailingCrypto:
·
Choose the exchange
·
Select Trailing stop buy order
·
Select base and quote coin. Now choose the
number of coins which you want to buy. You can also select the percentage
option. Say, 10 BTC or select 10% of BTC.
·
Enter the quote coin price at which you buy.
If this field is left blank, the current market price will be used.
·
Now select the offset which is a fixed
percentage above the current market price.
·
Submit order
Suppose the offset value is
3%. And, Quote Price of your selected crypto asset was 0.01623 while placing the
order. Assume market dips to a value of 0.01421, and then started to rise.
Since this is the lowest price, the stop value will be 0.01421 * 1.03 = 0.01464.
Now, whenever the market hits a price above 0.0146363, a market buy order will
be placed.
Conclusion
Before jumping into the
market, make sure you have an exit strategy. This way, you can maximize profit
and minimize loss with one move. TrailingCrypto is one of the best
crypto trading terminal that automates the trading strategy of traders,
and lets them earn profits with the current market trends by making use of the
right strategy at the right time.
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Created on Nov 11th 2023 11:29. Viewed 79 times.