What is Stop-Loss? (explanation)

[Yomose 3704]

On 7/9/2020 at 12:05 PM, Tunuu said:

Stop loss its a good thing that we should use all the time when we trade because it will help us to stop and close the trade automatically when there is a loss. This will prevent you with big loss.

If properly used, I have used it before and only little of my trading amount was executed until the price gotten below a price that could not trade the coin I bought. It is good to set the stop loss to a price that the range will be a bit higher than the order limit at the period. 

On 7/11/2020 at 11:48 AM, CryptoSkye said:

so in short you are implying that we can avoid loss and avoid risks by using the method stop loss. that is actually quite the idea mate. thanks for explaining and sharing what it means.

No, but losses will be reduced, and if the market favor later, the gain is no more but only loss. 

[BitcryptoHan 2557]

On 7/11/2020 at 11:48 AM, CryptoSkye said:

so in short you are implying that we can avoid loss and avoid risks by using the method stop loss. that is actually quite the idea mate. thanks for explaining and sharing what it means.

Stop loss really helps to minimize losses but the way it is done, you will still have to lose part of the funds. For example if you use $100 to trade, stop loss can still help you not to lose $95 or less depending on the stop loss price you chose. If stop loss is so tight, it can lead to a market order no to be fulfilled and ensue more losses unless the market picked back. 

[Ridam 7455]

You have explained the most important thing in the trading field in most easy way. And stop loss is must use features too while trading. For your examples because of stops loss you are able to sell the btc at 8k$. And the market goes bearish again, and buying at lower price makes you easier to cover your loss. 

[DiamondBit 720]

On 7/9/2020 at 7:46 AM, Yomose said:

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?

Yes. If the stop order is too tight, it will result to a trade that will not be filled on time. It can even be too late before the person will know about it when the coin has reduced significantly. But for coins like bitcoin, there are more changes that the stop loss order will still be filled possibly because of its high trading volume. 

[Yomose 3704]

On 9/1/2020 at 1:02 PM, DiamondBit said:

But for coins like bitcoin, there are more changes that the stop loss order will still be filled possibly because of its high trading volume. 

I get your point, the way the price of bitcoin is fluctuating, very possible the stop loss can be a little bit tight like you imply and still the stop loss order be fulfilled. But, there are times the price of bitcoin can be falling abruptly, in such time, having the stop loss in such way may let the price to drop below the stop loss order without the order fulfilling, thereby leading to loss. 

[czarek182 2]

hello, can the stop loss be applied to any exchange?

[BullRunBit 2773]

On 9/6/2020 at 11:09 PM, czarek182 said:

hello, can the stop loss be applied to any exchange?

No, just on exchange which have that function.

For example Binance have that function, but you can always putt sell order to stop loss if price go down.

If you dont know what is "Order" and how works try to research about that, soon I will create topic about that with more info because that is main thing in trading and everybody who starting with trading must to know that.

[BitcryptoHan 2557]

On 9/6/2020 at 10:09 PM, czarek182 said:

hello, can the stop loss be applied to any exchange?

It depends. For example, if you are using peer to peer exchanges, you may not see such feature. But, on exchanges that uses smart contract in a way to trade from one coin to another just like on binance, it is likely you will see the feature. But still, there are many exchanges that do not have stop loss feature. 

[Ammara bano 105]

In trading stop loss is really really a great and important feature. Because in trading no one want to face any loss. In the exchange of Bitcoin and crypto currency people face  huge loss. So to avoid this loss this is the best thing. 

[BitcryptoHan 2557]

7 hours ago, Ammara bano said:

In trading stop loss is really really a great and important feature. Because in trading no one want to face any loss. In the exchange of Bitcoin and crypto currency people face  huge loss. So to avoid this loss this is the best thing. 

@Ammara bano If you can remember a crash in bitcoin price in May, 2020 some days before halving. When bitcoin price was at $9800 on coinmarketcap but in less than 15 minutes crash to $8200. It was stopping loss that helped me to convert my bitcoin to tether. I would have lost more. 

[Yomose 3704]

On 9/22/2020 at 1:57 AM, Ammara bano said:

In trading stop loss is really really a great and important feature. Because in trading no one want to face any loss. In the exchange of Bitcoin and crypto currency people face  huge loss. So to avoid this loss this is the best thing. 

Stop loss is to avoid the losses, but if used improperly, it can lead to losses. Stop loss can make a trader to lose opportunity too. Which means someone needs to study about it before using it. 

7 hours ago, crbusmausmb1 said:

On account of Forex exchanging and cryptographic money tradings, stop misfortune work bodes well. In the event that we are breaking down the ongoing business sector streams and there are a few indications of losing the assets while playing out such a tradings, stop misfortune capacity can be extremely valuable for us.

There is nothing called stop misfortune, it is called stop loss, stop limit or stop price. 

[Luiiis 31]

Very good explanation, this is a topic that was difficult for me to understand but now it is clear to me

[Yoanny 232]

In my opinion stop loss is an effective way to protect your assets, it is another way to manage risk. It's one of the most effective ways for every trader to put their head on the pillow every night, or at least in my case, lol.

[veimaralex 83]

Great! maybe you should mention that is required an strategy to trade in a better way.

[arehagne 6]

Ohhh, really good explication. Thanks

[Hear80 122]

Very good explanation friend I hope, I keep learning at least now I understand the concept more and I hope to know how to put it into practice the next time I trade, greetings! 

[dr4ch3 18]

Good explanation, thank you.

[Adul69 35]

Very interesting information, because I didn't use stop-loss when trading and my money ran out. For the future I will use stop-loss. by the way thank you very much.

[awwad 74]

On 5/4/2020 at 4:38 PM, Kapil Koirala said:

Stop loss is a great tool to avoid further loss in our trades. When we set stop loss than and if the price of the coin goes against our order or trade and stop loss triggers to help us stop our trade when price further goes our opposite way.

It's called stop limit in some exchanges like kucoin. I hope yobet add this option in spot trading 

[Leunamen 244]

On 7/9/2020 at 1:46 AM, Yomose said:

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?

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.

[Qwertyuiopnbvcxz 61]

Profit and loss in the balance of the wise is the gain of faith and winning in the Hereafter, and a person loses forever, losing his life and his destiny, no matter what he gathers, wins, possesses and conquers. Among the forms of loss and the pain of grief: the bankruptcy of the balance of obedience after the Muslim has done many works in the face of righteousness, and the sadness increases when the balance is unable to make up

[Emiperez1209 111]

Good explanation, for people like me who am a beginner, it comes in handy.

[BullRunBit 2773]

3 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.

"investing goals" you write that well, because in trading it's really important that you have a strategy when to buy when to sell like topic where is your stop loss etc.

It's not that you buy some coin and if go up it's good and if go down you "stack" and that is it.

Stop loss is there to minimize you loss if price go to wrong direction.

[Muayad 125]

A stop-loss order is an order placed with a broker to buy or sell a security when it reaches a certain price. Stop-loss orders are designed to limit an investor’s loss on a position in a security and are different from stop-limit orders. When a stock falls below the stop price the order becomes a market order and it executes at the next available price. For example, a trader may buy a stock and places a stop-loss order 10% below the purchase price. Should the stock drop, the stop-loss order would be activated, and the stock would be sold as a market order.

Although most investors associate a stop-loss order with a long position, it can also protect a short position, in which case the security gets bought if it trades above a defined price.

[BullRunBit 2773]

3 minutes 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?

Some exchanges have stop loss function, but you can always putt a order like stop loss.

For example you buy some coin at 0.50$ and you are not sure in which direction will price go, you simple putt a order at -5% of that price 0.475$ and secure your investment if price go (down) in wrong direction.

I have one topic about order, you can check out here: