An Introductory Guide to Trailing
Stop, Trailing Stop-Loss and Trailing Stop-Sell Order in Cryptocurrency
Trailing Stop Loss
The idea behind Trailing stop is quite simple. In this order type, a value either a percentage or fixed amount is set after a position has been entered into, typically as a stop loss order. And, when that value is reached through the price drop in cryptocurrency, the decision to sell that particular crypto asset is made automatically.
Trailing stops only move up. This means, if the price of crypto asset is rising, your stop will trail behind it to the specified value and you will always keep those increasing profits. Most expert traders use this feature to earn profits.
Trailing Stop Buy
Trailing stop buy is placed at a fixed amount above the current market price. As the price of crypto asset falls, the trigger price is adjusted so that it is never more than a specified value or trail from the market price. If the price increases, the trigger price doesn’t adjust. And, the asset will be purchased at the best price.
Trailing Stop Sell
Trailing stop sell is placed at a fixed amount of the current market price of the crypto asset. As the price of cryptocurrency increases, the trigger price is adjusted automatically so that it is never more than a specified value or trails away from the market price. If the market falls, the trigger price doesn’t adjust.
Steps to place a trailing stop sell order at TrailingCrypto
·Select Trailing Stop Sell order type
·Select Base and Quote coin.
o E.g. Market: BTC/LTC
·Select the number of coins which need to be sold. You can also select the percentage option to specify relative coin volume.
o E.g. 10 coins. (quantity could be in the fraction)
o Or 20% of quote coin.
·Enter the quote coin price at with you bought. If it is left blank, the current market bid price will be used.
o E.g. 0.01516 BTC
·The offset is a fixed percentage value below the market price. Using this, a stop loss order is placed with an offset of x% from the peak market. If the market will go up, stop loss value will go up. If the market comes down stop loss will not change.
o E.g. Offset = 3%
