#StopLossStrategies What Is a Stop-Loss?

A stop-loss is an order that automatically sells (or buys, for shorts) a position when it hits a certain price level. It’s your insurance against major losses when the market moves against you.

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Popular Stop-Loss Strategies

1. Fixed Percentage Stop-Loss

• How it works: Set your stop at a fixed % below (or above) your entry price (e.g., 2%, 5%).

• Good for: Beginners, swing traders, those who want simplicity.

• Example: Buy BTC at $60,000, place a stop at 5% below = $57,000.

Pros: Simple to apply

Cons: Doesn’t consider market structure or volatility