How to operate stop-profit and stop-loss in the currency circle

In the cryptocurrency market, stop-profit and stop-loss operations are crucial for managing risk and obtaining profits. Specifically: Determine the take-profit point: Set it above the purchase price, usually 5% to 20%, to lock in profits. Set a stop loss: below the purchase price, usually 2% to 10%, to limit losses. Select type: Limit order or Stop order, as appropriate. Execution: Enter the take profit and stop loss points on the trading platform, select the type and confirm. Notes: Includes market volatility, slippage, ongoing monitoring and risk management.

Coin Circle Take Profit and Stop Loss Operation Guide

Foreword

In the volatile cryptocurrency market, stop profit and stop loss strategies are crucial for managing risks and protecting profits. This article aims to guide investors to carry out effective stop-profit and stop-loss operations to help them maximize profits and reduce losses.

What is stop-profit and stop-loss?

Take profit and stop loss are pre-set price points in a trade. When an asset reaches these price points, the order will be automatically executed to lock in profits or limit losses.

Operation steps

1. Determine the profit-taking point:

   • The profit-taking point should be higher than the buying price to lock in profits.
   • Depending on asset risk and market conditions, the profit stop point is usually set between 5% and 20%.

2. Set a stop loss point:

   • The stop loss point should be lower than the buy price, aiming to limit losses.
   • The distance between the stop loss point and the take profit point should be balanced with the risk tolerance, usually 2% to 10%.

3. Choose Take Profit and Stop Loss type:

   • Limit Order: Execute the order at a specific price.
   • Stop Loss Order: The order is executed when the price breaks through the specified level.
   • Trailing Stop: Dynamicly adjust the stop loss point as the asset price moves.

How to execute

1. On the trading platform, find the "Set Stop Loss and Take Profit" option.
2. Enter the take profit and stop loss points.
3. Select the take profit and stop loss type.
4. Click "Confirm" or "Settings".

Notes

• Volatility: The cryptocurrency market is highly volatile, and take-profit and stop-loss points may need to be adjusted based on market conditions.
• Slippage: In times of severe market volatility, orders may be executed at slightly different prices.
• Risk Management: The stop-profit and stop-loss strategy is not a panacea, and investors still need to take responsibility for their investments.
• Continuous Monitoring: Regularly check your take profit and stop loss settings to ensure they are still in line with current market conditions.

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