Stop Loss and Take Profit:
Essentials of Risk Management in Cryptocurrencies
In the world of cryptocurrencies, stop loss and take profit are two cornerstones of risk management. Suppose you buy a cryptocurrency for $100, hoping for growth. But the market is unpredictable, and to limit potential losses, you set a stop loss at $90. This means if the price falls to $90 or lower, your position automatically closes, limiting the loss. On the other hand, take profit allows you to predefine a profit level, where the deal also closes automatically upon reaching this price. For example, setting a take profit at $120 guarantees that your position will close, securing the profit. These tools help manage trades and protect against unexpected losses or missed profits.
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