What is a stop-loss order and how do I place one?
A stop-loss order is an order placed to buy or sell a cryptocurrency when it reaches a specified price, known as the stop price. This type of order is designed to limit an investor's loss on a position in a cryptocurrency. When the stop price is reached, the stop-loss order becomes a market order and is executed at the next available price.
Log In: Sign in to your Fokawa account.
Navigate to the Trading Page: Go to the trading section of the Fokawa platform.
Select a Trading Pair: Choose the trading pair you wish to trade from the list of available pairs.
Open the Order Form:
- Select "Stop-Loss Order" from the order type options.
- Enter the stop price at which you want the stop-loss order to trigger.
- Enter the quantity of the cryptocurrency you want to buy or sell.
Review and Place the Order: Double-check the details and confirm the order.
Monitor the Order: You can track the status of your stop-loss order in the "Open Orders" or "Order History" section.
- If you hold Bitcoin (BTC) and it's currently trading at $50,000, you might set a stop-loss order at $45,000. If the price drops to $45,000, your stop-loss order will be triggered, converting into a market order and selling your Bitcoin at the next available price, helping you limit your losses.
How to Place a Stop-Loss Order on Fokawa:
Log In: Sign in to your Fokawa account.
Navigate to the Trading Page: Go to the trading section of the Fokawa platform.
Select a Trading Pair: Choose the trading pair you wish to trade from the list of available pairs.
Open the Order Form:
- Select "Stop-Loss Order" from the order type options.
- Enter the stop price at which you want the stop-loss order to trigger.
- Enter the quantity of the cryptocurrency you want to buy or sell.
Review and Place the Order: Double-check the details and confirm the order.
Monitor the Order: You can track the status of your stop-loss order in the "Open Orders" or "Order History" section.
Example:
- If you hold Bitcoin (BTC) and it's currently trading at $50,000, you might set a stop-loss order at $45,000. If the price drops to $45,000, your stop-loss order will be triggered, converting into a market order and selling your Bitcoin at the next available price, helping you limit your losses.
Updated on: 19/06/2024
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