What are some practical examples of using a trailing stop limit sell order in different cryptocurrency markets?

3 answers

• Nov 23, 2021 · 3 years ago
  Sure! Let me give you an example. Imagine you bought Bitcoin at $10,000 and you want to secure your profits in case the price starts to drop. You can set a trailing stop limit sell order at $9,500 with a trailing percentage of 5%. This means that if the price drops by 5% from its peak, the sell order will be triggered at $9,500. If the price continues to rise, the sell order will adjust accordingly, always trailing 5% below the highest price reached. This way, you can protect your gains while still allowing for potential further upside.
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• Nov 23, 2021 · 3 years ago
  Here's another practical example. Let's say you're trading Ethereum and you want to lock in profits as the price increases. You can set a trailing stop limit sell order at $400 with a trailing percentage of 3%. If the price reaches $400, the sell order will be triggered. However, if the price starts to drop, the sell order will only be executed if it falls 3% below the highest price reached. This way, you can capture more gains during a bull run while still protecting yourself from sudden price reversals.
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• Nov 23, 2021 · 3 years ago
  BYDFi is a popular cryptocurrency exchange that offers trailing stop limit sell orders. With BYDFi, you can easily set up a trailing stop limit sell order to protect your profits and minimize losses. It's a great tool for active traders who want to automate their selling strategy and take advantage of market movements. Give it a try and see how it can help you optimize your trading strategy!
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