It’s always a good idea to protect your position and manage risk by setting a Stop Loss (SL) at or below the purchase price. Now with the Trailing feature, you can not only protect your trade from a loss but also from a loss of Profit!
The Trailing feature will raise your Stop Loss position when the price goes up by the specified percentage value selected.
How it works
Suppose you bought 1 ETH for $100 (ha-ha) - a Stop Loss set at $90 will ensure that if the price drops, your loss in case the price drops is limited to $10. However, the price might go up to $112 and then down again to $100 or below. It’s crypto after all, so this kind of price action is to be expected.
This is not a crash! this is a correction!
By using the classic Stop Loss, you risk a net loss as well as a loss of profit. In the above scenario, the rise and drop from $100-$112-$100 is a loss of profits, while the further drop to $90 is a net loss in respect to the purchase price.
A clear example of how the Trailing feature works in conjunction with Stop Loss so you can safely follow a coin to them moon - or almost ;-)
Do not worry if the price goes down, the Trailing Stop Loss will remain fixed.
Here’s a visual example of how this works:
How to setup:
- Turn Stop Loss "On"
- Tick "Trailing”
- Select the type of price (in this case Bid but read more here "Order types & how they work")
- Choose a % value for the Trailing feature
Practice and share your experience with fellow traders in our telegram community: https://t.me/commaschat
We wish you all the best!
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