What is Stop-Loss? (explanation) - Tutorials - CryptoTalk.Org Jump to content
BullRunBit

What is Stop-Loss? (explanation)

Recommended Posts

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):

900551253_MovaviScreenShot039-YoBit.Net-DASH(DASH)Exchange-yobit_net.jpg.c193f15e2b264ee05d3c25f62c8407b7.jpg

If you have any questions freely ask here.

  • Useful or interesting 17
  • +1 9
  • +2 2
  • +3 5
  • +4 2
  • +5 8

yobit_logo.png.7ce6c90eb02ab009752998fdcd25cf91.png

Share this post


Link to post
Share on other sites

This a good feature in every exchange because they can protect your money to lose value and stable them in some price,But still Yobit exchange dont have this feature and more ,they really should work for that

  • Useful or interesting 2
  • +1 2
  • +2 3
  • +3 1
  • +5 3

Share this post


Link to post
Share on other sites

Stop loss is a fantastic weapon in our trades to prevent any more loss. If we set a stop loss then and if the coin's price goes against our order or trade and stop loss triggers to help us stop our trade when price goes our opposite way further.

  • Useful or interesting 3
  • +1 2
  • +2 1
  • +3 2
  • +5 1

Share this post


Link to post
Share on other sites
On 5/5/2020 at 3:20 PM, DoboniAyuuii said:

I have used many exchanges before, some call it stop lose, while some called it stop price, some also call it stop limit. It is a very good thing when price is dropping on the market. 

Yes and main thing is that "cut" your loss, for example your stop loss is -10% and price drop -15% you will "cut" 5% loss.

25 minutes ago, ethan1751 said:

For stop loss, I already know it. And I often use it when trading. And it is indeed good to use, never trade without stop loss. because we will never know the market going forward.

Exactly, and we saw drops with -20% and over and stop-loss function is good for that.

Example I will buy BTC at 9100$ and my stop-loss will be 8700$ and good thing will be if you have plan for selling too for example I will sell 25% at 10,000$ and 50% at 12,000$ and rest 25% I will hold for higher price.

This is short example how trading should to be of course with same or different strategy.

  • Useful or interesting 2
  • +5 2

yobit_logo.png.7ce6c90eb02ab009752998fdcd25cf91.png

Share this post


Link to post
Share on other sites

@BullRunBit, first of all, thank you for adding the text "(explanation)" to the title, otherwise this would be just a thread for people who didn't read the text answering to that question.

 

And about the text, i can't emphasize enough how essential this to is for newbies to learn. I wish i would have understood the importance when i started trading. Could have saved a lot of money.

  • Useful or interesting 3
  • +1 4
  • +3 2

Share this post


Link to post
Share on other sites
On 5/3/2020 at 9:51 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):

900551253_MovaviScreenShot039-YoBit.Net-DASH(DASH)Exchange-yobit_net.jpg.c193f15e2b264ee05d3c25f62c8407b7.jpg

If you have any questions freely ask here.

Wow that is a good tutorial mate but I have a little knowledge about the stoploss because it is usually use in forex trade it helps you to maintain your lose at your own opinions. 

Share this post


Link to post
Share on other sites
On 5/9/2020 at 8:46 AM, Babubu609 said:

Wow that is a good tutorial mate but I have a little knowledge about the stoploss because it is usually use in forex trade it helps you to maintain your lose at your own opinions. 

@Babubu609you are right but not to maintain losses but to cut loss. Like you said, but for example, a market is at $1.23 and you think it could fall, you can but the stop $1.22 and the limit at $1.21. This means the when the market price of the coin dropped to $1.22, a limit order will be place at 1.21. 

Edited by BitcryptoHan
  • Useful or interesting 2
  • +1 1
  • +3 1

Share this post


Link to post
Share on other sites
32 minutes ago, BitcryptoHan said:

@Babubu609you are right but not to maintain losses but to cut loss. Like you said, but for example, a market is at $1.23 and you think it could fall, you can but the stop $1.22 and the limit at $1.21. This means the when the market price of the coin dropped to $1.22, a tease should be place at 1.21. 

Yea that is what I mean but still appreciate your explanation for I understand it clearly now and other will still learn from it. Nice to meet you once more in this forum

Share this post


Link to post
Share on other sites

yes ..you are right.stop loss is just to cut our loss if we feel price could go down at any time.stop loss helps in avoiding risk of loss and to protect our money from a high loss.so whoever feels like price vo down then they should go for stop loss

  • Useful or interesting 2
  • +3 1

Share this post


Link to post
Share on other sites
19 hours ago, Babubu609 said:

Yea that is what I mean but still appreciate your explanation for I understand it clearly now and other will still learn from it. Nice to meet you once more in this forum

@Babubu609 just one question, I know about the stop order very well but I have not used it before. If someone use it, can the order be canceled like a limit order?

  • Useful or interesting 2
  • +5 1

Share this post


Link to post
Share on other sites
31 minutes ago, BitcryptoHan said:

@Babubu609 just one question, I know about the stop order very well but I have not used it before. If someone use it, can the order be canceled like a limit order?

@BitcryptoHan yes of cause there are limits to stop loose especially when using it a forex trading when the market is tend to reverse lower than it fixed value it cancel and one end up making a great lose that why is good to focused on the trading to make sure the stoploss does not exceed it limit and cancel to generate great loss than profit.

Share this post


Link to post
Share on other sites

Thank you friend, you have explain very well and i think many members are now understanding the meaning of stop loss in trading. If you know how to use this feature in a good way, you will earn good amount in trading every day.

  • Useful or interesting 2
  • +1 1
  • +4 2

Time is the ultimate weapon!

Share this post


Link to post
Share on other sites
On 5/3/2020 at 2:21 PM, 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):

900551253_MovaviScreenShot039-YoBit.Net-DASH(DASH)Exchange-yobit_net.jpg.c193f15e2b264ee05d3c25f62c8407b7.jpg

If you have any questions freely ask here.

You have explained this topic very quickly. And yes stop lose function is too good. And this function is keep a very important role in trading. Through this function we may stop our loss.

  • Useful or interesting 2
  • +5 1

Share this post


Link to post
Share on other sites

It was really an much useful post me because before reading this post i had no idea about stop lose.And you have explained it clearly and briefly,so i think no one will not have any question about this.A lot of thanks mate.

  • Useful or interesting 2
  • +2 2
  • +5 1

Share this post


Link to post
Share on other sites

Stop loss is the price level that you set to stop the trade when the price goes against your way to minimize losses and it helps much when trading,it's highly recommended to use whenever you open a trade either in crypto or Forex trading.

  • Useful or interesting 1
  • +2 1
  • +3 1
  • +5 1

Share this post


Link to post
Share on other sites

I heard about this way to reduce the loss before but I did not know the details about this method but does this method have specific conditions for doing it and is it only related to bitcoin? please reply

  • Useful or interesting 1
  • +5 2

                                                    BetFury                                                   

    🐥Twitter | 📩Telegram | 🎲 You play - We pay 🎲 | YouTube 🍿| Reddit  🕹

                                                  Free BTC 1 800 Satoshi every day                                                 

Share this post


Link to post
Share on other sites

Thank you for this simple and clear explanation of this important job. Actually, I know about this important job that is found in most exchanges, but I see you used in the explanation a picture from the Yobit exchange and I think that the stop-loss function is not quality there and I don't know why?

Share this post


Link to post
Share on other sites

We have two types of stop loss plan. Manual and Automatic. In automatic mode, the system will sell your asset as soon as it reaches the desired value. This is done without your interference but in second type you set a target value in your mind and you check prices to prevent negligence. Which type do you think is superior? I think manual type is better because if you see any big changes in the charts, you will stop and wait more to choose a higher price. Automatic mode is more useful when you are away and don't have access to internet.

  • Useful or interesting 1
  • +2 3

Share this post


Link to post
Share on other sites

This topic is a good reminder about tis excellent tool that too many people don't know. Now you can make a topic about the opposite tool "Take Profit".

  • Useful or interesting 1
  • +1 3
  • +4 1
  • +5 1

Free $0.50 daily paid in Crypto -Here-
Free crypto and fresh news daily -Here-

2 days to profit -Here-

Share this post


Link to post
Share on other sites
On 5/19/2020 at 1:24 AM, Crypto123 said:

Thank you for this simple and clear explanation of this important job. Actually, I know about this important job that is found in most exchanges, but I see you used in the explanation a picture from the Yobit exchange and I think that the stop-loss function is not quality there and I don't know why?

Yes you are right, Yobit dont have such a function but that function is useful and it would be good that they add Stop-Loss on Yobit.

20 hours ago, Brushless4500KV said:

We have two types of stop loss plan. Manual and Automatic. In automatic mode, the system will sell your asset as soon as it reaches the desired value. This is done without your interference but in second type you set a target value in your mind and you check prices to prevent negligence. Which type do you think is superior? I think manual type is better because if you see any big changes in the charts, you will stop and wait more to choose a higher price. Automatic mode is more useful when you are away and don't have access to internet.

Manual?

That is like you are day trader and you whole day checking chart and price to cut your loss if price go down and that is exhausting (like day trading at all) and with Stop-Loss function you simple secure your investment that if price go down you cut your loss automatic.

15 hours ago, bitcoinb said:

This topic is a good reminder about tis excellent tool that too many people don't know. Now you can make a topic about the opposite tool "Take Profit".

"Take Profit"?

You think Sell button?

Maybe after that I can make a topic about Buy button what you think. :classic_biggrin: 

  • Useful or interesting 2
  • +1 1
  • +3 1

yobit_logo.png.7ce6c90eb02ab009752998fdcd25cf91.png

Share this post


Link to post
Share on other sites
3 hours ago, BullRunBit said:

"Take Profit"?

You think Sell button?

No, I don't think the sell button... The "Stop Limit" opttion is divided in 2 options: "Stop loss" and "Take Profit". Because a lot of members here like to talk about Binance, let's take it for example:

spacer.png

 

As you can see, "exchange" is divided in 3 sections:

  1. Limit (you set a buy/sell price), That's the "sell" you mention to me....
  2. Market (buy/sell) at the actual price
  3. Stop Limit is divided in 2 options: OCO (One cancels the other) and "Stop Limit". In stop limit, the Buy limit is "take profit" and the Sell limit is "stop loss".

 

Stop Loss and Take Profit explained by IqOption:

"Stop-loss and take-profit work in pretty much the same way but their levels are determined differently. Stop-loss signals serve the purpose of minimizing the expenses of an unsuccessful trade, while take-profit orders provide traders with an opportunity to take the money at the peak of the deal."

Link:

https://blog.iqoption.com/en/how-to-use-stop-loss-and-take-profit-in-forex-trading/

 

 

OCO explained by Avatrade:

"Considered the most basic form of trade automation, one cancels the other (OCO) is an order combining 2 entry orders. It is basically a conditional order stipulating that, if one order is executed, then the remaining one is automatically cancelled."

Link:

https://www.avatrade.com/education/order-types/one-cancels-the-other-orders?tag=86776&aclid=38995961&_ga=2.62322988.1858804694.1589968735-600659688.1589968735

 

@BullRunBit  I had (thank you) the opportunity to see that you are a professional miner ... Now I see that you are also a professional trader. Congratulations.

 

 

 

Edited by Desais
  • Useful or interesting 2
  • +1 2
  • +2 1
  • +4 1
  • +5 1

Free $0.50 daily paid in Crypto -Here-
Free crypto and fresh news daily -Here-

2 days to profit -Here-

Share this post


Link to post
Share on other sites
1 hour ago, bitcoinb said:

As you can see, "exchange" is divided in 3 sections:

  1. Limit (you set a buy/sell price), That's the "sell" you mention to me....
  2. Market (buy/sell) at the actual price
  3. Stop Limit is divided in 2 options: OCO (One cancels the other) and "Stop Limit". In stop limit, the Buy limit is "take profit" and the Sell limit is "stop loss".

1. That is that you putt order! (which dont have connection with stop-loss)

2. That is to sell on currently/market price! (which dont have connection with stop-loss)

3. OCO is interesting function, but I did not talking about that! Stop-Loss only!

 

This second reply I will report because you want more posts! :classic_wink:
 

Edited by Desais
  • Useful or interesting 1
  • +3 1
  • +4 1

yobit_logo.png.7ce6c90eb02ab009752998fdcd25cf91.png

Share this post


Link to post
Share on other sites

In the case of Forex trading and cryptocurrency tradings, stop loss function makes the huge sense. If we are analyzing the real time market flows and there are some signs of losing the funds while performing any sort of tradings, stop loss function can be very useful for us. 

  • Useful or interesting 2
  • +1 1
  • +3 1

 

 

Share this post


Link to post
Share on other sites

Stop loss is really great feature in trading and every exchange provide this feature for their traders, because they don't face huge loss when their traders trade goes their against, because trading is not easy and without this stop loss feature we loss our funds in few hours.

  • Useful or interesting 2
  • +3 1
  • +5 1

 

   

Share this post


Link to post
Share on other sites
18 hours ago, Honny143 said:

Stop loss is really great feature in trading and every exchange provide this feature for their traders, because they don't face huge loss when their traders trade goes their against, because trading is not easy and without this stop loss feature we loss our funds in few hours.

Yes, I have noticed this too, but I noticed for stop loss to be effective, the stop limit and the limit order must have a significant difference for it to work, else, it will not work and the market will decrease and your order not unfilled. Did you noticed this too?

  • Useful or interesting 1
  • +1 3
  • +4 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.

  • Topics

  • Сообщения

    • Главный инвестиционный директор Bitwise Мэтью Хоуган заявил, что институциональные инвесторы, вложат в биткойн до 1 триллиона долларов через биржевые фонды (ETF), поскольку они постепенно переходят в криптовалюту. В записке, разосланной инвестиционным экспертам, Хоуган выразил обеспокоенность по поводу волатильности цен на биткойн. Поскольку актив колеблется от 60 до 70 тысяч долларов, генеральный директор считает, что лучшая стратегия — «сохранять спокойствие и смотреть в будущее».   Несмотря на краткосрочные колебания, Хоуган выделил несколько ключевых предстоящих событий. К ним относятся халвинг и потенциальное одобрение спотовых биткойн-ETF такими крупными платформами, как Morgan Stanley или Wells Fargo . Хоуган подчеркнул, что текущие процессы комплексной проверки, проводимые инвестиционными комитетами и консультантами, являются важным шагом перед совершением инвестиций в биткойны. Он упомянул, что в ожидании этих событий цена Биткойна может испытать боковое движение в ответ на незначительные изменения настроений. Тем не менее, Хоуган с оптимизмом смотрит на будущее Биткойна, ссылаясь на устойчивый бычий рынок с ростом почти на 300% за последние 15 месяцев и веские причины для дальнейшего роста.   Январское одобрение спотовых биткойн-ETF значительно открыло рынок криптовалют для профессионалов в области инвестиций. Хоуган считает, что это знаменует собой начало интереса со стороны профессионалов, управляющих триллионами долларов, и этот процесс займет годы. Он также подчеркнул приток $12 миллиардов в ETF с момента их запуска, назвав это самым успешным дебютом ETF. Тем не менее, он ожидает, что глобальные управляющие активами, выделяющие всего 1% своих портфелей в биткойны, могут привести к притоку в 1 триллион долларов, в результате чего первоначальные 12 миллиардов долларов кажутся минимальными инвестициями. Ранее в марте Хоуган предположил, что спотовые ETF Ethereum могут привлечь больше активов, если будут запущены после мая. Учитывая более осторожный прогноз относительно майского дебюта, он предположил , что декабрьский запуск может быть более выгодным. Задержка даст Уолл-стрит и традиционному финансовому сектору больше времени для понимания сложностей криптовалюты, особенно Биткойна. По оценкам Хогана, Уолл-стрит потребуется от восьми до девяти месяцев, чтобы приспособиться к биткойнам, прежде чем рассматривать новый ETF.
    • Hello, friends, I wanted to alert you all about my recent experience with an airdrop group named @Airdrop_Fam. Initially, everything seemed legitimate. They requested an advance payment for their services, which I thought was standard procedure. However, the situation took a turn for the worse when they began demanding additional funds to publish a post. When I resisted their sudden and unexpected demand, communication came to an abrupt halt; they completely ignored my messages. The person behind this scheme is the admin of the group, known as @Airdrop_FAM_Admin. At first, this individual appears cooperative and friendly, but don't be deceived – it's all a facade to extort more money from you. Please, I urge everyone to be cautious and steer clear of @Airdrop_Fam. The group is a sham, filled with no genuine participants. The admin is a charlatan through and through. Don't let yourself be their next victim! Stay safe and always do thorough research before engaging with such groups
    • Як не крути, держава всеодно захоче накласти лапу на вашу діяльність, це просто покищо питання часу!
    • Снижение комиссий и увеличение прибыли: Как Bitmore изменяет игру Высокие банковские комиссии давно являются проблемой для многих предпринимателей. В Bitmore мы стремимся к минимизации ваших расходов на финансовые операции. Убедитесь лично, воспользуйтесь услугами перевода денег между странами, или оплаты счетов.
    • Lower fees and higher profits: How Bitmore is changing the game High bank fees have long been a problem for many entrepreneurs. At Bitmore, we're committed to minimizing your financial transaction costs. See for yourself, use our cross-country money transfer or bill payment services.
    • Обмен в несколько кликов!!! О нас: Сервис на рынке появился  недавно, но наша команда с опытом в сфере обменов больше 5-ти лет, готова предоставить клиенту максимально быстрый и качественный обмен. Наши операторы консультируют клиента на всех этапах сделки. Возможны быстрые обмены с Банковских карт, QIWI, Юмани на Bitcoin, Ethereum, Tether, LiteCoin и другие криптовалюты и обратно. Так же предусмотрена работа с обменами вида Криптовалюта-Криптовалюта. Для клиентов предусмотрено: - Выгодные условия для обмена; - Реферальная программа ; - Программа лояльности для новых клиентов  Оставляйте заявки, обращайтесь в чат и совершайте обмены на выгодных условиях! На данном этапе время работы обменного сервиса с 10:00 до 22:00 по МСК. Наши контакты: eMail: https://admin@ebucks.fi  - для сотрудничества https://support@ebucks.fi   - поддержка, вопросы по обменам Telegram: https://t.me/ebuckssup (@ebuckssup) добавляйтесь только по ссылке. Возможны дубли мошенников. Чат на сайте: https://ebucks.fi/ru
    • Актуальные курсы на 29.03   🇵🇱 ВАРШАВА 🇵🇱   Покупаем Ваш Tether (USDT).   💸Доплатим Вам 0.7 за $. 🏦Выдадим наличный $, €, PLN. 🏢Центр, свой офис, личная встреча, без предоплат. ♻️Денежные переводы по всему миру! 🌍 💰Работаем с любыми объёмами.   За деталями - пишите Менеджеру 🧑‍💻👉 в телеграм  @PLsmartgroupp
    • Дорогие наши клиенты! Предлагаем выгодные обмены в Тайланде. Вы можете купить Тайские Баты по самому выгодному курсу.   НАШИ ПРЕИМУЩЕСТВА: Анонимность и безопасность Отсутствие скрытых платежей и комиссий Среднее время обработки заявки 5 минут Работаем 24/7   КОНТАКТЫ Чат с оператором: EX.ATM24.PRO Телефон: +66 918464597 Телеграм: https://t.me/atm24pr
    • Приветствуем наших клиентов! Предлагаем Вам выгодно купить Биткоин.   Обменник криптовалют Imperial.exchange предлагает выгодный курс и оперативно проводит обмен. Профессиональная работа службы поддержки.   Наши контакты:Почта: support@imperial.exchangeTelegram: https://t.me/imperialexchange_admСайт: https://imperial.exchange/
    • Майнер криптовалюты Hut 8 Corp опубликовал отчет о своих результатах за последние шесть месяцев. Согласно пресс-релизу компании , Hut 8 увеличила выручку до $60,6 млн за шесть месяцев, закончившихся 31 декабря 2023 года. Основные показатели финансовой отчетности Hut 8 включают увеличение выручки на 32% и значительное увеличение чистой прибыли до $6,2 млн по сравнению с к предыдущему чистому убытку. Стоимость майнинга биткойнов ( BTC ) составила 18 815 долларов США, и за этот период компания добыла 1244 биткойна. Стоимость энергии Hut 8 за МВтч составила 44,52 доллара США, что отражает эффективность управления затратами на электроэнергию. Биткойн укрепляет активы Hut 8 Сила баланса компании очевидна в ее активах в биткойнах : по состоянию на 31 декабря 2023 года 9 195 биткойнов оценивались примерно в 388,1 миллиона долларов. Эта база активов обеспечивает Hut 8 значительную рыночную стоимость и потенциал для будущих доходов. Биткойн демонстрирует устойчивый рост с начала года после того, как спотовые биткойн- ETF в США привлекли в биткойн институциональных и розничных инвесторов. С начала года первая и до сих пор лидирующая криптовалюта в мире подорожала на 60%, а в начале марта BTC обновил свой исторический максимум, поднявшись выше $70 000. Кроме того, рыночная капитализация Биткойна превысила 1,4 триллиона долларов, что сделало самую ценную криптовалюту восьмым по величине активом в мире, обогнав серебро.
×
×
  • Create New...