What are the advantages of using stop on quote in cryptocurrency trading?

1 answers

• Dec 16, 2021 · 3 years ago
  Stop on quote is a feature commonly offered by cryptocurrency exchanges like BYDFi. It allows traders to automatically execute trades based on predefined price levels. The advantage of using stop on quote is that it helps traders to manage their risk and protect their profits. By setting a stop loss order, traders can limit their potential losses if the market moves against them. Similarly, they can set a take profit order to secure their gains when the market reaches a certain price level. This feature is particularly useful for traders who cannot constantly monitor the market and want to automate their trading strategy. However, it's important to note that stop on quote orders are not guaranteed to be executed at the specified price, especially in fast-moving markets. Traders should always consider the potential risks and carefully set their stop orders.
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