What is a stop-loss order?
A stop-loss order is like a safety net for your crypto investment. It is designed to limit your potential loss on a cryptocurrency.
For instance, you can set a stop-loss order at or below the price at which you bought the crypto. Once your stop price is reached, a market order is triggered and your order is executed at the best available price. Keep in mind that if the price of the digital asset decreases significantly and rapidly, your order may be executed at a lower price than your stop price. It is also important to note that stop-loss orders are only available for sell orders.
For example, if you buy Solana (SOL) at €170 per coin, you might set a stop-loss order at €150. If the price drops to €150, your Solana will be automatically sold to prevent further losses. In a scenario where the price of SOL is dropping suddenly and rapidly, it may be that you only receive 149,50€ per coin instead of 150€.
Pros and Cons
The main advantage of a stop-loss order is that it protects you from potential losses without taking any action. Moreover, the regular transaction fees of 0,15% only apply if your stop-loss order is executed.
The primary drawback is that your stop-loss order could be executed at a lower price than your stop price in case the price of the crypto drops rapidly and significantly.
Please note that your stop price must be below the current bid price.
You can easily select stop-loss order under "Sell" in the order window on both our desktop and mobile platforms.
For instance, you can set a stop-loss order at or below the price at which you bought the crypto. Once your stop price is reached, a market order is triggered and your order is executed at the best available price. Keep in mind that if the price of the digital asset decreases significantly and rapidly, your order may be executed at a lower price than your stop price. It is also important to note that stop-loss orders are only available for sell orders.
For example, if you buy Solana (SOL) at €170 per coin, you might set a stop-loss order at €150. If the price drops to €150, your Solana will be automatically sold to prevent further losses. In a scenario where the price of SOL is dropping suddenly and rapidly, it may be that you only receive 149,50€ per coin instead of 150€.
Pros and Cons
The main advantage of a stop-loss order is that it protects you from potential losses without taking any action. Moreover, the regular transaction fees of 0,15% only apply if your stop-loss order is executed.
The primary drawback is that your stop-loss order could be executed at a lower price than your stop price in case the price of the crypto drops rapidly and significantly.
Please note that your stop price must be below the current bid price.
You can easily select stop-loss order under "Sell" in the order window on both our desktop and mobile platforms.
Updated on: 02/09/2024
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