Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: CoinEx on November 18, 2021, 12:22:48 PM
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In perpetual trading, by taking profit and stopping loss, you can effectively keep your positions safe from risks, which is also an essential skill for accumulating wealth in the crypto world. This tutorial will teach you how to take profit and stop loss in perpetual trading at CoinEx.
When users cannot pay prompt attention to the market information, the take-profit and stop-loss liquidation can be realized by pre-setting the stop price for a current position. When the market price (mark price / latest price) reaches the preset trigger price, the system will execute the market-price order to close all positions
(https://miro.medium.com/max/1400/0*WP79xXWmDaMeSp7Q.png)
I. Enter the perpetual trading page at CoinEx, and find the entry of TP/SL
1) The entry of TP/SL is as follows:
(https://miro.medium.com/max/700/1*LmC3pC867myWbMIGBu6LSw.png)
2) Stop price (Trigger price) has 2 different types: Mark Price (default) and Latest Price.
a. Mark Price: the order is to be triggered when the Market Price hits the Stop Price.
b. Latest Price: the order is to be triggered when the Latest Price hits the Stop Price.
(https://miro.medium.com/max/700/1*0Zr7RfrP8KUWf6tQXicwEQ.png)
II. How to set Take-Profit and Stop-Loss? Here are four examples:
1) One-side Stop Loss under Long Position
Say, a user is holding one BTC long position with an average opening price of 40,000 USDT. He plans to close the position to stop loss when the price drops to 39,000 USDT. Here are the settings:
(1) Set [Price Type] as the Latest Price
(2) Set [Stop Prcie] at 39,000;
(https://miro.medium.com/max/1400/1*jxxCns-s5gI3WdxDwtwjxg.png)
(https://miro.medium.com/max/1400/1*mUs_dWgvZDec_yDfU9IS7A.png)
When the market price drops to 39,000 USDT, Stop-Loss will be triggered and all positions will be liquidated at the market price. If the user plans to close the position to take profit, the stop price should be higher than the opening price of 40,000 USDT.
2) One-side Stop Loss under Short Position
Say, a user is holding one BTC short position with an average opening price of 40,000 USDT. He plans to close the position to stop loss when the price rises to 41,000 USDT. Here are the settings:
(1) Set [Price Type] as the Latest Price
(2) Set [Stop Prcie] at 41,000;
(https://miro.medium.com/max/700/1*r7hzlP_dIM1udEg46rXx-w.png)
(https://miro.medium.com/max/700/1*2Y5SUCTVlesnDTzD-oy0ew.png)
When the market price rises to 41,000 USDT, Stop-Loss will be triggered and all positions will be liquidated at the market price. If the user plans to close the position to take profit, the stop price should be lower than the opening price of 40,000 USDT.
3) Two-side Take Profit & Stop Loss under Long Position
Say, a user is holding one BTC long position with an average opening price of 40,000 USDT. He plans to close the position to get profit when the price rises to 42,000 USDT and to stop loss when the price drops to 39,000 USDT. Here are the settings:
1. Take-Profit: Set [Price Type] as the Latest Price and [Stop Prcie] at 42,000;
2. Stop-Loss: Set [Price Type] as the Latest Price and [Stop Prcie] at 39,000;
(https://miro.medium.com/max/700/1*G8IcO9Q7ftabWXL67-GcwA.png)
(https://miro.medium.com/max/700/1*G5-BcQRGuGHH6aNApQJzGg.png)
When the market price rises to 42,000 USDT, the take-profit condition will be triggered and the position will be fully closed at the market price, so the stop-loss condition will be automatically cancelled. When the market price drops to 39,000 USDT, the stop-loss condition will be triggered and the position will be fully closed at the market price, so the take-profit condition will be automatically cancelled.
4) Two-side Take Profit & Stop Loss under Short Position
Say, a user is holding one BTC short position with an average opening price of 40,000 USDT. He plans to close the position to get profit when the price drops to 37,000 USDT and to stop loss when the price rises to 41,000 USDT. Here are the settings:
1. Take-Profit: Set [Price Type] as the Latest Price and [Stop Prcie] at 37,000;
2. Stop-Loss: Set [Price Type] as the Latest Price and [Stop Prcie] at 41,000;
(https://miro.medium.com/max/700/1*TxLKdXjGMLZRs3SGDmbEyg.png)
When the market price drops to 37,000 USDT, the take-profit condition will be triggered and the position will be fully closed at the market price, so the stop-loss condition will be automatically cancelled. When the market price rises to 41,000 USDT, the stop-loss condition will be triggered and the position will be fully closed at the market price, so the take-profit condition will be automatically cancelled.
The crypto market is subject to volatile fluctuations. Here is a tip from CoinEx:
In perpetual trading, keep a close eye on your positions, and remember to take profit and stop loss in time
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Stop loss is very important to be activated when you are trading. This is used to guard against possible or bad risks that occur. With a stop loss, you can minimize your losses without you having to supervise directly because the stop loss feature is set before you make a trade. To take profit, this is nothing but the result of the profits that you will get, this is also important. It's useless for you to trade but do not expect profit, even things like that are rarely encountered.
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Thanks for this information, really helpful.
So it also depends on what platforms you re using.
If this is about using CoinEX, those are completed fills.
However if you want more to other exchanges this may help yuo much:
https://www.etoro.com/trading/how-to-set-stop-loss-and-take-profit-targets
Clearly: Taking profits -> Set a price target to sell when we have been a profit some percentage
- Stop loss, this is important enough to ensure whether if the price drop down very basically, we can set a certain price of we are curious about
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For novice traders, this is very important information with detailed instructions. I am a beginner, so this post is very useful for me. It is very important to use stop-loss to avoid incurring uncontrollable losses. This information will be useful to me.
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I am not professional trader so i didn't use this but i think stop loss is best way to stop trade when your trade is goes in loss and you are about to lose your assets. in my opinion traders must use this facility and make there safe trades...
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I am not professional trader so i didn't use this but i think stop loss is best way to stop trade when your trade is goes in loss and you are about to lose your assets. in my opinion traders must use this facility and make there safe trades...
Stop loss is suitable for short term investment or daily trading.
If you holder, You didn't need this feature.
Take profit too, It also for short term trading.
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I am not professional trader so i didn't use this but i think stop loss is best way to stop trade when your trade is goes in loss and you are about to lose your assets. in my opinion traders must use this facility and make there safe trades...
Stop loss is suitable for short term investment or daily trading.
If you holder, You didn't need this feature.
Take profit too, It also for short term trading.
You're right, stop loss is suitable for short term trader.
For holder, that invest for long term investment it's not for being needed.
I also use stop loss for several that I choose for short term.
For my daily trading.
But for hold, I have choose several coins for long term investment, I didn't use it.
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This is really helpful information, thanks.
The platform you use may also have an impact.
For those of you who would like to participate in other exchanges, here are some suggestions:Trade The Games
Yeah, it's a great information to explain take profit and stop loss in perpetual trading.
Trader should know about it.
I'm not professional trader, just do spot trading, not in future trading.
Of course, Short trading will need those features, especially Stop Loss.
You can try, if you are daily trader.