Understanding Ethereum: What does “Trailing Stop Buy Order” on Bitstamp?
In the world of cryptocurrency trading, shopping and selling shares in the digital empire can be as complex as traditional markets. Two key concepts that often confuse the traders to beginners lag the orders to stop shopping and lagging order to stop sales. One of these orders is the stop order, which plays a significant role on the Bitcoin market on stock markets like Bitstamp. In this article, we will explore what the orders to stop buying and how they work.
What is the lag?
Stop occupation is a feature of an automatic purchase or sale designed to prevent losses as prices move against you. This is basically the level of the price the merchant wants to come, and at that moment he will exit his store. This can be used in various markets, including the future of contracts, trading options, and even crypto currency such as bitcoin.
What permanently stops the purchase order means on a bitstamp?
The purchase order is similar to purchasing with the restriction of prices below the current market price. When you set this order type, your stop loss will automatically sell your Bitcoin at the first point where it reaches or exceeds the set price. This means that if the price of bitcoin drops after it reaches the maximum and then it starts to grow again before it strikes the cost of shopping, your position will not be sold immediately.
Key features:
–
Set stop the price: The minimum amount you want to sell your Bitcoin.
–
Limited order type: Order to stop permanent purchase is usually an executive stop order. This means that after being set up and the price reaches or exceeds the set price of stopping, your position will be automatically sold.
How does the trail stop buying an order works on a bitstamp?
To use the track stop the order with Bitstamp, follow these steps:
- Login to your Bitstamp Account.
- Choose the Bitcoin pair you want to trade.
- Go to
Orders Management
and click on
Limit orders.
- Choose an order type (in this case, the Kupa Stop Command).
- Enter a stopping price by which you are willing to sell your Bitcoin.
- Set the time box when you want to enter or go out on the market based on your risk management strategy.
Conclusion
Understanding the way the stop commands are bought is essential for anyone who wants to trade crypto currency, including those using platforms like Bitstamp. By installing a stopping price and determining a certain type of order (in this case an executive stop order), traders can reduce potential losses if the market goes against them. Always keep in mind that trading with a lever means you could lose more than your initial investment; Therefore, it is crucial to set up real stops on the basis of market conditions and tolerance at risk.
