What is a STOP LOSS order?
A stop loss order is an order that you set to sell a certain asset / coin when it reaches a certain price. A stop loss order is designed to limit a potential loss on a position that you have taken.
When should I use it?
Such an order is normally used when you take a short-term position on an investment or when you are day trading. It can be extremely useful when you are not around your computer, so if you’re on your vacation or you expect the market to see some volatility in a time when you will not have access to it.
How do I use it?
Let’s say you invested some money into Substratum at its current price of 0.0009 ETH for 2000 coins. You are interested in keeping your money invested in this coin for long term but you do not want to see your investment shrinking therefore you decide to sell a stop loss order at 0.0008000 ETH. In this case, you would lose 0.0001 ETH per coin, which amounts to a total of 0.2 ETH for all your Substratum coins. This would be equivalent to a loss of about $90, however you are potentially avoiding a more significant loss if the price of Substratum drops considerably from its current all-time high.
Incremental STOP LOSS order
An incremental stop loss order is a type of stop loss order where you don’t sell all your coins once the price drops to a certain value. Instead, you set up a starting sell price and an absolute sell price and the platforma will automatically sell your coins incrementally within that range.
- the starting sell price is always higher than the absolute sell price
- the absolute sell price is the price at which you sell all your coins
- the starting sell price is the price at which you start to sell some of your coins
So if you set your starting sell price at 0.00085 ETH and your absolute selling price at 0.00075 ETH, that means that:
- the platform will start selling some of your coins at 0.00085 ETH – let’s say 20%
- it will sell another 20% of your coins at 0.00080 ETH
- if the price tanks to 0.00075 ETH (absolute selling price) – it will sell 100% of your coins
How to set a STOP LOSS order on Bittrex
This is a video showing you how to set an incremental STOP LOSS order on Bittrex.
TUTORIAL: How to set an incremental STOP LOSS order on Bittrex TUTORIAL: Cum să folosești ordinul STOP LOSS incremental pe platforma Bittrex http://www.drcrypto.ro/2017/12/02/how-to-set-a-stop-loss-order/
Posted by Doctor Crypto on Tuesday, 5 December 2017
In this image you can see the 2 boxes where you put the absolute selling price and the start selling price. If you only want to set a simple STOP LOSS order, not an incremental one, you only have to fill in the Ask price and leave the Order Type on Limit. That means that all your coins will be sold when the price reaches your asking price.