According to a recent report, over 10 crores Indians hold cryptocurrencies and you know, this number may go even higher this season. However, crypto trading is fraught with many kinds of risks, and up-down, the craze of cryptocurrency trading is attracting many of them. In order to get long-term benefits from crypto trading, considering the right strategies and tools can make trading safe and profitable.
There are many different types of tools and advanced order types that provide by the best crypto trading platforms which can make crypto trading fun. Deciding an appropriate time to exit any trade is as important as determining the time of entering a position in all types of trading.
Trailing Stop order
One such type that is used by exert traders is Trailing order. This order type allows one to set a limit target or moving stop price. The target price moves based on the price increase. Trailing stop order is a popular trading strategy by which the trader can sell the asset once its price reaches below the pre-specified price. So, this type of order is used to buy or sell assets if they move in a direction which a trader considers unfavorable.
This is a type of conditional order which uses a trailing amount rather than a specific stop price, to determine when to submit the market order to buy or sell. The trailing amount could be in either points or percentage, which follows the stock price as it moves up or down. Trailing stop orders provide the best and most efficient ways to manage risks. Most of the traders use these orders as a part of their exit strategy.
This is the most basic technique used for an appropriate exit point which maintains the stop-loss order at a precise percentage just above or below the market price. In volatile markets, the advanced order types are quite useful in limiting the potential losses of the traders.
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