How to use limit orders for better trading results
As the popularity of cryptocurrencies grows, more and more merchants turn into these digital assets as a way to diversify their portfolio and earn higher returns. However, as so many options are available, it can be overwhelming to navigate in a complex world of cryptocurrency trade.
In this article, we look at how to use border orders for better trading results in cryptocurrencies such as Bitcoin, Ethereum and others.
What are the boundary orders?
Border order is a kind of market order that defines the price at which the merchant is willing to buy or sell property. It is basically “buy” or “sell” order with a specific price target. Unlike STOP-Loss orders that automatically close the drive when it reaches a certain price, border orders allow merchants to set their own price goals and decide whether they are buying or selling.
How do border orders work in the cryptocurrency trade?
In Cryptocurrency, border orders work in the same way as traditional market orders. Thus:
- Editing : When you make a specific cryptocurrency such as Bitcoin (BTC) or Ethereum (ETH), Border Order, you 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 (eg $ 10,000). This is called a “price alarm”.
- Action : If the price reaches the desired level before the expiry of the limit order, the transaction will be performed at the specified price.
- Stop loss : If you have set up a Stop loss order to another location, it will close automatically 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 BUSINESS BUSY
Border orders offer a number of benefits that can help merchants achieve better results:
- Avoid losses : By setting a specific STOP loss level, you can limit any losses if the price goes on to its position.
- Manage Risk : With boundary order, you have full management of your risk exposure. You can set a maximum loss or no loss to help protect the capital.
- Flexibility
: Border orders allow you to trade at different prices and still achieve your desired winnings.
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Setting limit orders
You can set the border order in the cryptocurrency trading the following these steps:
- Select your trading platform : Select a reputable cryptocurrency or a commission tray that supports boundary orders.
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- Set the price target : Enter the price you are ready to participate in the store (boundary 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 target of $ 19,500. Your platform will place a limit for you, and if the price reaches $ 19,700 before the order expires, it will be made by $ 19,500.
conclusion
Using border orders can help merchants of cryptocurrencies such as Bitcoin, Ethereum and others to achieve better trading results by managing the risk, avoiding losses and performing stores based on price level. By following these steps and understanding how border orders work in the cryptocurrency trade, you are well on your way to make information -based investment decisions.
Remember that training makes the perfect! Start with a small location size and try different types of limit orders to see what is best for you.
