Learn how a take-profit order and stop-loss order works to minimize risk and how a who should use one.
What Is a Take-profit Order?
In the cryptocurrency market, a take-profit order (T/P) is a type of preset order that specifies the price at which to close out an open position for an expected profit. If the market price does not reach the preset price, the take-profit order will not be executed. If the market price reaches the preset price, the open position will be automatically closed.
What Is a Stop-loss Order?
A stop-loss order(S/L) is also a preset order that will be executed when the market price reaches the stop-loss price. Then the opened position will be closed for a loss.
Who Should Use a Take-profit Order & Stop-loss Order?
These two orders are beneficial for short-term traders hoping to gain immediate profits from a quick rise or fall in the market. Most traders use take-profit orders in conjunction with stop-loss orders.
The good side of utilizing a take-profit order or a stop-loss order is that the trader does not have to worry about manually executing a trade or make second-guessing themselves. For take-profit orders, it allows you to take advantage of a quick change in the market rather than potentially missing the chance to get a profit. For stop-loss orders, it helps control risk that prevents you from a further loss if you encounter a volatile market change, especially when the market never rises or falls to the level you preset. Traders can freely change the preset price or cancel the orders before they are executed.
As known, the risk is inseparable from return. These two orders are not good for long-term traders, who want to make a larger profit. Long-term trend traders might get frustrated when they found a good trend but quit the market too early. For day traders who want to maximize their profits, they could try 100x leverage trading.
xbt, xbtusd, xrp usd, bchusd, ethusd, bitcoin trading, xrp to usd, ltc usd, bitcoin leverage, perpetual contract, xbt/usd, bitcoin volatility index, xmr trader, bch usd, quanto, xrp/usd, xbt to usd, 100x bitcoin, xbt price, bch to usd, bitcoin leverage trading, eth usd, xbt futures, leveraged bitcoin trading, cross leverage, eth/usd, funding rate, eth trade, xbt usd, take profit order, beth, bitcoin volatility, ripple price, ethereum price, eth price, tezos price, cryptocurrency exchange, chainlink price, bitcoin trading, litecoin price, omisego, dogecoin price, waves crypto, crypto exchange, ripple price chart, cryptocurrency trading, xrp price chart, cryptocurrency prices live, crypto trading, ethereum price chart, ltc price, cryptocurrency exchanges, xtz price, cryptocurrency trading platform, crypto guide, bitcoin futures, bitcoin trading platform, etherium price, bitcoin price chart, live cryptocurrency prices, stellar lumens, bch price, eth price chart, algorand price, aave crypto, ripple chart, what is ripple, cryptocurrency exchange platform, live crypto prices, bitcoin exchanges, link crypto, icon icx, polkadot price, crypto trading platform, trade cryptocurrency, eosio, what is dogecoin, aave lend, litecoin uses, chain link price, trade bitcoin, bitcoin futures trading, omise go, filecoin price, cryptocurrency prices, best bitcoin exchange, staking coins, digital currency exchange, algo price, trading cryptocurrency, what is tezos, what is waves coin, polkadot coin, bitcoin marketplace, btc otc, bitcoin margin trading, tether crypto, atom crypto, what is zec, crypto prices live, tether coin, cardano ada, margin trading crypto, cryptocurrency margin trading, bitcoin exchange, monero price chart, algo crypto, eth chart, xtzs, etherum price, trading bitcoin, bitcoin exchange usa, dot price, cryptocurrency futures, margin trading cryptocurrency, cosmos atom, dogecoin chart, icon crypto, link crypto price, ether price, btc trading, cryptocurrency price, melon cryptocurrency, what is stellar lumens, what is cardano, cryptocurrency trading sites, xrp price today, digital asset exchange, what is xrp, digital currency trading, orchid oxt, bitcoin trading sites, usd coin, what is lisk coin, chainlink price chart, us crypto exchanges, knc price, crypto monnaie, lisk coin, chainlink crypto, cryptocurrency live prices, cryptocurrency trading platforms, buy and sell cryptocurrency, cryptocurrency type, pax gold, usdt tether, chainlink cryptocurrency, price of cardano, xbt price, cosmos crypto, otc crypto, dot crypto, staking rewards, ada price chart, xmr price, truth about bitcoin, oxt crypto, stellar cryptocurrency, what is bitcoin cash, types of cryptocurrency, otc bitcoin, melon coin, xrp chart price, chainlink chart, xlm stellar, crypto bit trade, crypto, xrp ripple chart, digital coin exchange, eos cryptocurrency, cryptocoin trading, cardano coin price, what is monero, bitcoin price live, filecoin price chart, xrp rpice, digital currency exchanger, cryptocurrency 101, ada cardano price, algorand coin, xrp pric, icx token, crv token, atom coin, purchase xrp, sc cryptocurrency, crypto currency exchange, orchid crypto price, cryptocurrency types, cryptocurrency exchange usa, yearn finance price, crypto trading platforms, xlm crypto, purchase ethereum, trading crypto, chain link, bitcoin trade, doge coin price, what is tether, atom price, crypto live, chainlink crypto price, tether cryptocurrency, polka dot price, icx icon, xdg price, bitcoin price history, usdc coin, xrp price live, icon coin price, different cryptocurrency, cosmos price, crypto trade, trx tron price, bitcoin platform, augur rep price, cryptocurrency trade, gno cryptocurrency, cardano chart, what is staking coins, cryptocurrency categories, crypto exchange usa, crypto currency, ripple prive, bitcoin leverage trading, btc exchange, icx crypto, bitcoin liquidity, cryptocurrency platforms, otc bitcoin trading, monerov price, dot coin price, riplle price, dash crypto price, types of cryptocurrencies, gnosis coin, ripple price xrp, mln crypto, litecoin purchase, crypto futures, ripple chart price, cardano, bit coin trade, trade crypto, leverage trading crypto, tron prices, snx price, cosmos coin, sc coin price, lisk, siacoin rate, qtum coin, fiat to crypto exchange, price of xmr, purchase monero, us based cryptocurrency exchange, ripple coin price chart, rep price, reddit icon icx, xrp price now, price of tezos, exchange crypto, eos price chart, futures bitcoin, ada cryptocurrency price, bitcoin trading website, ethereum margin trading, bitcoin exchanger, fiat to crypto, most secure cryptocurrency exchange, what is xlm cryptocurrency, knc cryptocurrency, paxg price