Crypto Academy

How to configure a Stop Loss trade

How to configure a Stop Loss trade

5 min reading

Already know what is stop loss order? Then, discover how to configure it on bit4you!

stop-loss

How to configure a Stop Loss trade

Introduction

Almost all expert crypto traders believe that setting stop losses is essential in all trading strategies. Newcomers to the market frequently disregard this rule, but they eventually learn to grasp it. The article explains how to set stop loss orders on the bit4you trading platform.

What is a stop loss and why is it needed?

A stop loss order is a risk management tool in the cryptocurrency market for limiting possible risks.  Setting a stop loss order informs the trader of the maximum loss he may suffer within each deal. A stop loss order’s principal function is to restrict the trader’s losses inside each position. When you don’t have time to monitor the price fluctuations of all your traded assets in real-time, you may use this type of risk management tool. To get more detailed information about stop loss orders, please follow the link to our article.

First of all, the key moment is to realize that trading does not guarantee profits and always involves risk. Trading and investing in the cryptocurrency market is quite risky, therefore you must secure your positions. Another reason traders use stop orders is to work in the short term during a period of high volatility. Short-term traders take on substantially higher risk than medium- and long-term trading. As a result, they should be considerably more concerned about ensuring their risks, particularly through the use of stop loss orders.

How to configure stop loss on bit4you

The setting of stop loss orders is very easy on the bit4you trading platform. If you have not registered on the website, then it is high time to do so. After you’ve logged in, proceed to the Positions menu. In this section, you will see all of your acquired assets, how much you invested in each asset, its current price, and your profit. Then, from your list, select the asset for which you wish to set a stop loss order. After that, you will be asked to enable stop loss. By the way, there you can discover more information about SL by being redirected to the educational article. 

Furthermore, if you swap the SL button, you may now set the order. You can also select the preferred percentage in the stop loss percent tab, which will trigger the order when you reach a certain percentage of your loss. The Price and your shortfall following (Deficit) the SL order will then be displayed there. All you need to do is just enable the Following stop loss? and Save buttons.

However, every trading case is unique. We should consider the volume of your deal, deposit, risk level, volatility, analysis, strategy, etc. It is also critical to evaluate the average volatility for a particular time. You can place a stop loss on support levels. The support levels are a better reference point because a significant number of pending orders are centered directly. Support levels emerge less frequently than local minimums and maximums since the nearest level may be too far from the order opening price. Furthermore, when opening huge trades, it is easier to follow such levels and execute stop losses.

Conclusions

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