Fifth Educational Post
#ForBeginnersOnly
Request for Trailing Stop
It is a sell or buy order that automatically moves with the market direction in your favor. If the market reverses against you by a certain percentage (the trailing distance), the position is sold or bought to protect profits or reduce losses.
1- Trailing distance: The allowed percentage or value for the price to move against you before the order triggers.
2,3- Sell price: A limit order price if you disable the market button, or the market price immediately if you enable it.
4- Quantity: Determines the amount of BTC to be sold.
5- Activation price: An additional condition. If you don’t set it, the system relies only on the trailing distance.
⚠️ Difference between a Limit Stop and a Trailing Stop:
- The limit stop is fixed at a specific price.
- The trailing stop moves with the market and closes the trade when the price reverses by a certain percentage.
🔹 Practical example: If you have 1 BTC and the market price is $60,000, and you set a trailing distance of 5%, the price first rises to $63,000, causing the stop to move to $59,850. Then the price rises to $66,000, moving the stop to $62,700. After that, the price reverses to $62,500, breaking the stop, and the trade is immediately sold at the market price.
In simple terms, the trailing stop makes the stop “climb” with the price, and when the reversal reaches the trailing distance, the trade is sold at the last recorded stop.
#ForBeginnersOnly
Request for Trailing Stop
It is a sell or buy order that automatically moves with the market direction in your favor. If the market reverses against you by a certain percentage (the trailing distance), the position is sold or bought to protect profits or reduce losses.
1- Trailing distance: The allowed percentage or value for the price to move against you before the order triggers.
2,3- Sell price: A limit order price if you disable the market button, or the market price immediately if you enable it.
4- Quantity: Determines the amount of BTC to be sold.
5- Activation price: An additional condition. If you don’t set it, the system relies only on the trailing distance.
⚠️ Difference between a Limit Stop and a Trailing Stop:
- The limit stop is fixed at a specific price.
- The trailing stop moves with the market and closes the trade when the price reverses by a certain percentage.
🔹 Practical example: If you have 1 BTC and the market price is $60,000, and you set a trailing distance of 5%, the price first rises to $63,000, causing the stop to move to $59,850. Then the price rises to $66,000, moving the stop to $62,700. After that, the price reverses to $62,500, breaking the stop, and the trade is immediately sold at the market price.
In simple terms, the trailing stop makes the stop “climb” with the price, and when the reversal reaches the trailing distance, the trade is sold at the last recorded stop.
