What is the meaning of trailing stops in the context of cryptocurrency trading?

3 answers

• Feb 19, 2022 · 3 years ago
  Trailing stops are a type of stop-loss order that automatically adjusts as the price of a cryptocurrency moves. When you set a trailing stop, you specify a percentage or dollar amount below the current market price. If the price drops by that amount, the trailing stop order is triggered and the cryptocurrency is sold. The unique feature of trailing stops is that they move with the price, allowing you to capture more profits if the price continues to rise. It's a popular tool among traders to protect their gains and limit their losses.
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• Feb 19, 2022 · 3 years ago
  Trailing stops are like your personal bodyguard in the cryptocurrency market. They follow the price of your chosen cryptocurrency and protect your profits. Let's say you bought Bitcoin at $10,000 and set a trailing stop of 5%. If the price goes up to $11,000, your trailing stop will move up to $10,450 (5% below the highest price). If the price then drops to $10,400, your trailing stop will be triggered and your Bitcoin will be sold. It's a great way to lock in profits and minimize losses in a volatile market.
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• Feb 19, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers trailing stops as a feature to help traders manage their positions effectively. With BYDFi's trailing stops, you can set your desired percentage or dollar amount and let the system take care of the rest. It's a convenient tool that allows you to automate your trading strategy and protect your investments. Whether you're a beginner or an experienced trader, trailing stops can be a valuable tool in your arsenal.
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