CRIPTO CURRIRPTION: Starting Guide to Effective Trading Limited Order
The trade of cryptocurrencies has become increasingly popular in recent years, and many people and institutions strive to use the currency cryptocurrency. One of the key aspects of successful cryptocurrency trade is the effective use of limited orders. In this article, we examine how to use limited orders at the Cryptocurrency store, including when to set, what types of orders are best for different market conditions and tips to maximize profit.
What are the limited orders?
A limited order is an automated order to purchase or sell certain currencies at a predetermined price. The most important difference between regular order and restrictions is that the order is only made if the market reaches the desired price. In other words, it is triggered to limit the order (debt) if the price falls below a given level or sale (short) if it rises above the second level.
When to use limited orders in trading crippto currency
Limited orders can be particularly useful for cryptocurrencies for several reasons:
- Risk Management : If you set up a stop order at a specific price, you can limit possible losses if the market is opposed.
- Speculation : Limited orders allow you to enter positions when you think a certain crypto currency is due to the rise in price.
- Price recognition : You can use limited orders to buy or sell cryptocurrencies to predict future prices.
Types of limited orders
There are many types of limited orders, each of which has the benefits:
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- Sale of order limit (TP) : The lowest possible price to sell the crypto currency.
- Limited Stop Order (SLO)
: A point where your position is automatically closed when you fall below the price set.
When to order limited commands
Maximizing your profit to use limited orders Follow these guidelines:
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Buy Limit orders : If you think the curve is a currency to increase the price or when you see how the potential trend develops.
- Selling Limited Orders
: If you are short (against bet) cryptographic currency and would like to close some profits or use the bear trend.
Tips to trade effective orders
To maximize your trading strategy, keep in mind these tips with a command:
- Use the loss of loss : Set the shutdown to make it 10-20% lower than the purchase or selling price to limit potential losses.
- Set real prices : Orders are limited only if they understand market trends and potential prices firmly.
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Example of scenario
Suppose we trade with bitcoin and our broker offers $ 40,000 order limit. If we believe that cryptocurrency prices are rising due to increased institutional interest or better regulatory support, we have set the order. If the price falls below $ 38,500, the STOP order will be automatically activated, preventing you from selling your long position.
Conclusion
Limited orders are an effective tool in the cryptocurrency shop, which allows you to manage risk, market trends and crafts at a predetermined price. Understanding when you use limited orders effectively and follow these tips for successful implementation, you can potentially maximize profit in the world of cryptocurrency trade currency.
