Crypto Stop Loss
What is the Purpose of Stop Loss Orders in Crypto?
Stop loss and trailing stop loss orders allow investors to protect their portfolios when they have a particular exit price in mind. For example, a trader could decide letting their position ride for a while but place a trailing stop which moves along with the market as the crypto markets rally, and kicks in once they start to turn. A regular stop order would not move as the market rallies, it would stay at the originally entered price.
Does Cove Markets Support Stop Loss Orders in Crypto?
Absolutely. It is pretty straightforward to enter a stop loss or a trailing stop loss order through Cove Markets, to be placed on one of several supported exchanges. A regular stop loss just has a limit price parameter, but a trailing stop loss has two parameters, trailing amount and limit offset. The trailing amount is the amount used to calculate the price that will trigger the stop. Limit offset is just an offset from the trigger price to arrive at the final price for the stop order.
Stop Loss and Trailing Stop Loss order types are useful for trading cryptocurrency. Cove Markets fully supports both of these order types.