Here are 3 Stop-Loss orders you should be aware of to ensure the protection of your investments and mitigate risks in your trades:
1. Fixed Stop-Loss:
Definition: It is a specific price at which the trade is automatically closed to avoid significant losses.
Example: If you bought Bitcoin at $30,000, you can set the stop-loss order at $29,000, meaning that the trade will be closed if the price drops to this level.
2. Trailing Stop-Loss:
Definition: It is a stop-loss order that adjusts as the price moves in your favor, helping you protect profits.
Example: If the price of Ethereum rises from $2,000 to $2,500, you can set the Stop-Loss at $2,300, ensuring that you protect your profits.
3. Stop-Loss with a percentage setting:
Definition: A percentage of your acceptable loss is set, and when the price reaches this percentage, a closing order is triggered.
Example: If you decide to take a 5% loss on BNB, as soon as the price drops by 5% from the entry price, the trade is closed.