#OrderTypes101 Risk Management: Reducing Losses and Maximizing Profits

Risk management is crucial for success in Bitcoin trading, especially due to the asset's volatility. Traders can limit potential losses by setting stop-loss orders, which automatically exit positions when a predetermined loss level is reached. Position sizing and the risk-reward ratio are also important, as they help traders determine how much capital to risk on each trade. Proper risk management ensures reduced losses, allowing traders to remain in the market and protect their capital over time.