How to use limit orders for better trading results
As the popularity of cryptocurrencies increases, more and more traders turn into these digital assets as a way to diversify their portfolio and make higher profits. However, as so many options are available, it may be overwhelming to browse in a complex world of cryptocurrency trade.
In this article, we look at how to use border controls for better trading results in cryptocurrencies such as Bitcoin, Ethereum and others.
What are the border orders?
Border order is a kind of market order that defines the price at which the trader is willing to buy or sell properties. Basically, it is “buy” or “sell” the order with a specific price target. Unlike stop-loss orders that automatically close the unit when it reaches a certain price, border orders allow traders to set their own price goals and decide whether to buy or sell.
How does border orders work in cryptocurrency trade?
In cryptocurrency, border controls work in the same way as traditional market commands. Thus:
- Edit : When you make a specific cryptocurrency, such as Bitcoin (BTC) or Ethereum (ETH), border control, determine the number of coins you want to buy or sell.
- Price alarm : The system sends an alarm when the price reaches the desired level (for example, $ 10,000). This is called “price alarm”.
- Action : If the price reaches the desired level before the limit order expires, the transaction will be performed at the specified price.
- Stop Loss : If you have configured a stop loss order in another location, it will automatically close when the price drops to $ 5,000 (in this case). This will help prevent significant losses if the market is transferred to your position.
CRYPTOCURRENCY BUSINES OF OPERATION OF busy business
Border orders provide a number of benefits that can help traders to achieve better results:
- Avoid losses : By setting a specific stop loss level, you can limit any losses if the price goes to its position.
- Manage the risk : With a border command, you have complete risk exposure management. You can set a maximum loss or no loss to help protect the capital.
- Flexibility : Border commands allow you to trade at different prices and continue to reach your desired earnings.
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Setting of limit orders
You can set the border order in Cryptocurrency trading the following steps:
- Select your trading platform : Select a renowned cryptocurrency or commission tray that accept border orders.
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- Set the price target : Enter the price at which you are ready to attend the store (border order).
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Example of real life
Suppose you want to buy 10 BTCs for $ 20,000 with a limit order that defines the price objective of $ 19,500. Your platform will place a limit to you, and if the price reaches $ 19,700 before your order expires, it will be done with $ 19,500.
Conclusion
The use of border controls can help cryptocurrency traders such as Bitcoin, Ethereum and others get better trading results by managing risk, avoiding losses and performing stores depending on the price level. By following these steps and understanding how border controls work in cryptocurrency trade, you are about to make information based investment decisions.
Remember -the training makes it perfect! Start at a small location and try different types of limit commands to see what is best for you.
