Quote from: emmybd on Today at 03:38:20 PM

A stop-loss order is an order entrusted with a broker to purchase or sell out when a store attains a particular value. A stop-loss is blueprinted to prohibit investor losses in a protected circumstance. Installing a stop-loss order for 10% below the stock we bought will prohibit the loss by 10%. The convenience of a stop-loss order is that we do not have to keep an eye on how the stock acts every day. This prominence is especially efficient when we are on respite or in circumstances that confine us from beholding our stocks for extended periods of time. The drawback is that a short-term fluctuation in the stock value may facilitate the stop price.

Though similar to that. A stop-loss order works by automatically closing a crypto position when the price hits a pre-determined level. Stop-losses are essential for risk management. Traders can calculate what position size to take and how much money to risk in a single trade. Stop loss is very important of course for traders but it is very peculiar and very risky technique.