Home Crypto Trader Pro How to properly manage stop-loss orders

How to properly manage stop-loss orders

by icosuccess
, How to properly manage stop-loss orders

Before we move on to understanding the best practices in managing a stop-loss order, we first need to understand what it is.

Stop-loss orders are typically placed at a price level a specified distance away from either a long or short entry level. This helps limit your risk exposure while in a trade to lock in and protect floating profits that may arise.

Trading platforms generally provide an option for placing stop-loss levels and orders can be modified even while in the midst of a trade, as long as your order hasn’t been completely filled.

Once the price gets to the stop-loss level, a market order is automatically triggered to exit the trade in either a loss or profit. A stop-loss order does not always have to end up closing a trade in a loss, but we’ll explain that further below.

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