What is the impact of using trailing stop loss versus trailing stop limit on Fidelity for managing risk in cryptocurrency trading?

3 answers

• Feb 18, 2022 · 3 years ago
  Using trailing stop loss on Fidelity can be an effective way to manage risk in cryptocurrency trading. It allows you to automatically sell your assets if the price drops below a certain percentage, helping to limit potential losses. This strategy is especially useful in volatile markets where prices can fluctuate rapidly. However, it's important to set the stop loss percentage carefully to avoid triggering unnecessary sell orders during normal price fluctuations.
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• Feb 18, 2022 · 3 years ago
  Trailing stop limit on Fidelity is another risk management tool that can be used in cryptocurrency trading. It combines the features of a trailing stop loss and a stop limit order. With trailing stop limit, you can set a percentage below the current market price at which you want to sell your assets. If the price drops to that level, a limit order is triggered and your assets are sold at the best available price. This strategy provides more control over the selling price, but it also carries the risk of not being executed if the price drops too quickly.
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• Feb 18, 2022 · 3 years ago
  BYDFi, a digital currency exchange, offers trailing stop loss and trailing stop limit features for managing risk in cryptocurrency trading. Trailing stop loss allows you to protect your investments by automatically selling them if the price drops below a certain percentage. Trailing stop limit, on the other hand, gives you more control over the selling price by triggering a limit order when the price reaches a specified level. Both strategies can be effective in managing risk, but it's important to carefully consider your trading goals and risk tolerance before using them.
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