What is Stop-Loss? (explanation)

[satoshifactory 295]

1 hour ago, Srbanana said:

At first glance it is seen that it is one of the best ways to maintain a profit and loss margin since today with so many variables there was a risk of losing a lot of capital and the important thing would be to always maintain a profit margin. It would be nice to know where and how to use it?

Very good post and explanation of the operation of the stop loss
It is really very important to know how to handle this tool well if we want to enter the world of trading, it will avoid losing a lot of money.
Thanks for the input.

[WillSol23 267]

15 hours ago, Leunamen said:

When I started trading I lost a lot of money because I did not know this option, either because I forgot or simply because I did not adequately control my investment goals. I find this type of post very appropriate, as it allows many new users to familiarize themselves and avoid getting deflated from the world of cryptomonies.

According to you, my friend, it is important to know this type of information because it gives us more opportunities to win, and not to fall into scams or lose the investment we had planned to make. In addition, to control everything that is out of our hands and that we do not know. Thanks for the information.

[Yoanny 232]

On 5/3/2020 at 4:51 AM, BullRunBit said:

Simple explanation of function Stop-Loss is that you cut your loss if price go in wrong way, and that you cut your loss you use stop-loss function.

Example:

I buy Bitcoin on 8,700$ price and set up my stop-loss on 8,000$ that is over -8% stop-loss of my buying price and if price go down till 8,000$ I will sell for that price and if price go more down I will cut loss and maybe buy at lower price etc.

 

Stop-loss function is that you cut your loss if you think that price will go down.

One more explantation (image):

If you have any questions freely ask here.

Excellent explanation, at least for me it is more than clear.

[Manuel Cortes Hernandez 295]

Stop Loss orders are a way of ordering the purchase or sale of listed securities, conditional on a certain price being reached. This price is set in advance by the investor and can be a fixed or variable value

Stop Loss serves us to avoid further losses in our operations. When we establish a stop loss, and if the price of the currency goes down the stop loss is activated to help us stop our operation and thus not lose.
 

[ectormy 104]

pretty useful future but still a lot of things that count while setting it up.

[rocki 319]

On 5/3/2020 at 10:51 AM, BullRunBit said:

Simple explanation of function Stop-Loss is that you cut your loss if price go in wrong way, and that you cut your loss you use stop-loss function.

 

The topic you covered in this guide is really very important. Each trade you put up should have a stop loss to protect you from losing all your capital. It's very good that you make new users aware of this topic. Thank you.

[Sajjad noori 53]

These tools are good, but I think if you pay attention to the pattern of the chart, you will find out more when to buy and when to sell.

[maryoar 148]

A stop loss refers to the order that a trader gives the broker to stop losses.
This whole process consists in the fact that the secret to speculation on the stock market is to always keep risk under control. To be this possible, you must know how much you are willing to lose before buying or selling.
As soon as that value is known or decided, an order will be given to the broker to open the position.
Additionally, at the time after giving the buy or sell order, a stop loss must also be left, which is a sell order that will only be executed if the price falls enough to cause an unattainable maximum loss. The goal is to preserve capital.

[Carlopantaleon 44]

The stop loss is a good tool for days when everything goes against it because it can help us stop operations and avoid large losses.

[eywizard 103]

This tool is very useful if you know the market well because without being aware of the value all day you can set a limit for when it happens, the transaction is made alone without the need for user interaction. Thanks for the explanation as it is very useful.

[BullRunBit 2773]

2 hours ago, alabastrolas said:

Wow thank you very much for the info. I want to start trading but i dont know which is the best exchange, so if someone can recommend me I will be grateful!

This topic is about trading not about exchanges, but if you want to search for exchange you can start with exchange which pays your here. 

2 hours ago, eywizard said:

This tool is very useful if you know the market well because without being aware of the value all day you can set a limit for when it happens, the transaction is made alone without the need for user interaction. Thanks for the explanation as it is very useful.

Look, I saw a lot of comments "great I did not know about this" etc. But point is that this is one of first things which you need to know before you start to trading. And it's not big deal you can use or you dont need it's all depend of your trading strategy. For example I use one more strategy without stop loss, I buy some coin for some amount and if price go down I buy more and if go more down I again buy more but of course you must to be sure that coin/token will recover. But again, if you buy some coin and you expect quick profit and you thing that price will maybe go in wrong direction it's always good to use stop loss to secure your investment.

[Lilianeth 26]

Certainly, the Stop Loss is one of the most important limits that we have to take into account when making transactions of purchase or sale.
As a recommendation, always determine first the distance of the defense order, before deciding the size of the transaction, since it is better to trade based on LOGIC than on AVARICE. 
This is because it is ALWAYS better to avoid using a small Stop Loss just because you want to open a large position. Many traders do it just the other way around, leaving their trades as a failure even before they open them.
 

[Mirandum 77]

Actually, a stop loss is a tool provide by a broker on a trading platform to help minimise the rate at which traders loss Thier trade. When you place a trade on a particular brokerage, you might not have all the time in the world to watch over it, so all you have to do with the stop loss, is set the time you want your trade to end and boom! You are good. When you start to loss your trade it will help you stop the trade at the point you have decided.

[CoinFree 54]

On 5/3/2020 at 4:51 AM, BullRunBit said:

Simple explanation of function Stop-Loss is that you cut your loss if price go in wrong way, and that you cut your loss you use stop-loss function.

Example:

I buy Bitcoin on 8,700$ price and set up my stop-loss on 8,000$ that is over -8% stop-loss of my buying price and if price go down till 8,000$ I will sell for that price and if price go more down I will cut loss and maybe buy at lower price etc.

 

Stop-loss function is that you cut your loss if you think that price will go down.

One more explantation (image):

If you have any questions freely ask here.

 

To understand the functionality of these important orders to limit losses and risk per trade, it is crucial to first understand the limit-orders (https://www.binance.vision/es/tutorials/what-is-a-limit- order) and market-order (https://www.binance.vision/es/tutorials/what-is-a-market-order), now, speaking of stop-limit-order, we can explain it as follows: Stop-limit orders are conditional that are executed in a market, they are made up of an "trigger" which is titled stop (stop / stop) and an "executor" that we call limit (limit) which triggers the final price. (order supplied).

SOURCE: https://academy.binance.com/es/articles/what-is-a-stop-limit-order

For this to work we must fill both stop and limit fields, in the stop price we will place the price that will activate our order and it is conditional that there will be a buy / sell range up to the limit.
 

For a stop-limit order to be fulfilled, you must assign an average distance between both prices to guarantee its activation, this because in high volatility markets you can skip the order and you will be out or trapped in the order.

6 hours ago, Atrocsius said:

My simple explanation for this is something like that - stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

 They are essential to limit losses, they serve as an exit conditional when you have a% level that goes against you, also the most experienced traders use it to break-out of some resistance (for example) or some chartist pattern.

In other cases they serve to position orders in a buying range close to some support to obtain a more optimal and assured entry.

 

SOURCE: https://academy.binance.com/es/articles/what-is-a-stop-limit-order
 

Edited October 5, 2020 by CoinFree

[BullRunBit 2773]

9 hours ago, CoinFree said:

To understand the functionality of these important orders to limit losses and risk per trade, it is crucial to first understand the limit-orders (https://www.binance.vision/es/tutorials/what-is-a-limit- order) and market-order (https://www.binance.vision/es/tutorials/what-is-a-market-order), now, speaking of stop-limit-order, we can explain it as follows: Stop-limit orders are conditional that are executed in a market, they are made up of an "trigger" which is titled stop (stop / stop) and an "executor" that we call limit (limit) which triggers the final price. (order supplied).
SOURCE: https://academy.binance.com/es/articles/what-is-a-stop-limit-order

For this to work we must fill both stop and limit fields, in the stop price we will place the price that will activate our order and it is conditional that there will be a buy / sell range up to the limit.

For a stop-limit order to be fulfilled, you must assign an average distance between both prices to guarantee its activation, this because in high volatility markets you can skip the order and you will be out or trapped in the order.

First of all, in this topic I write simple explanation what is stop loss not some function on some exchange.

And stop loss you can use when you putt regural order, does not mean that exchange must to have stop loss function. If you check out older posts in this topic you can find few posts similar like yours, but like I say above you can simple putt order to stop loss (secure your investment). Simple right?

[Fortnite2020 49]

A stop loss is an order that you give your broker a "stop loss". ... In addition, immediately after giving the buy order, you must also leave a stop loss, which is a sale that will only be executed if the price falls enough to cause you your maximum allowable loss.

[Fortnite2020 49]

On 3/10/2020 at 21:20, Carlopantaleon said:

El stop loss es una buena herramienta para los días en los que todo va en su contra porque puede ayudarnos a detener operaciones y evitar grandes pérdidas.

I didn't use it before because I didn't know how it worked but I already know how to use it and it has helped me a lot ... it is an excellent tool.

[Orientrader 39]

It is used primarily to stop the loss of capital in a trade either up or down, it is always advisable to use the stop-loss each time you enter the financial markets, that will help you preserve your capital and not lose everything

[mehmetdalkiran0 83]

Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading.

[Ecoloco2020 55]

hello, see in the example that you wrote your stop loss is for the total amount, can you place several stop losses with different percentages of capital and at different prices? As of now, thank you for the answer.

[BullRunBit 2773]

4 hours ago, Ecoloco2020 said:

hello, see in the example that you wrote your stop loss is for the total amount, can you place several stop losses with different percentages of capital and at different prices? As of now, thank you for the answer.

Why not, just split how you want and on which price you want to putt orders.

For example, you buy BTC at 11,000$ and you putt order on 10,500 (20%) and on 10,200$ (30%) and on 10,000 (50%) but you do this when/if price go in wrong direction than expected (for you).

I recommend you if you want to start trading try to research as much as you can before you buy some coin.

And of course to research/learn about trading at all. 

[duncun007 3577]

7 hours ago, BullRunBit said:

Why not, just split how you want and on which price you want to putt orders.

For example, you buy BTC at 11,000$ and you putt order on 10,500 (20%) and on 10,200$ (30%) and on 10,000 (50%) but you do this when/if price go in wrong direction than expected (for you).

I recommend you if you want to start trading try to research as much as you can before you buy some coin.

And of course to research/learn about trading at all. 

I try to explain this to people on here, you dont need to have all your orders in just one price, dont go all in at one price and rather ladder down your bids and let it be filled when bitcoin go down, same when you want to sell, let your orders be filled in different areas.

[udumalai01 35]

this is awesome thread for beginers , who entred crypto filed now. also this function tab saves our asset geting over loss. this feature updated in futuers contracts as  take profit with stop loss...

[ArianLp 64]

Excellent explanation, as a beginner I made the mistake of trading without a stop loss and of course I went to a loss.  Since then I always configure an order using the stop and additionally added take profit always looking to protect my investments.  What other recommendation can you give when entering the trade?

[BullRunBit 2773]

39 minutes ago, ArianLp said:

Excellent explanation, as a beginner I made the mistake of trading without a stop loss and of course I went to a loss.  Since then I always configure an order using the stop and additionally added take profit always looking to protect my investments.  What other recommendation can you give when entering the trade?

Look, stop loss is just a function which you can or dont need to use decide is on you.

Like I write many times, point is that you research before you buy some coin/token and sometimes you dont need stop loss you maybe buy again if price go down or you can use stop loss and buy again if price drop a lot.

That is just a thing which you strategy use, and of course which type of trader are you day trading or holder/short term or long term.