How to use marginal orders for better trading results
As the popularity of cryptocurrencies grows, more and more merchants are turning this digital property as a way to diversify their portfolio and earn a higher return. However, because there are so many opportunities, it can be extremely difficult to navigate in a complex world of cryptocurrency trading.
In this article, we look at how to use better trade results for cryptocurrencies such as Bitcoin, Ethereum and others.
What are the marginal orders?
The border order is a kind of market order defining the price for which the merchant wants to buy or sell the property. Basically, it is to “buy” or “sell” an order with a specific purpose. Unlike Stop-Loss orders that automatically close the disc when it reaches a certain price, border orders allow traders to set their price goals and decide whether they are buying or selling.
How do border orders work in cryptocurrency trade?
During cryptocurrency, border orders operate in the same way as traditional market orders. So:
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- Prices Alarm : The system sends an alarm when the price reaches the desired level (eg $ 10,000). This is called “price alarm”.
- Action : If the price reaches the desired level before the end of the limit is expired, the operation will be carried out at the price specified.
- STOP Losses
: If you have set a suspension loss order in a different location, it will automatically close when the price is reduced to $ 5,000 (in this case). This will help prevent significant loss if the market is moved to your position.
Business action cryptocurrency management is busy
Border orders offer a number of benefits that can help merchants achieve better results:
- Avoid loss : By setting a specific level of suspension loss, you can limit any loss if the price continues.
- You can determine the maximum loss or without a loss to help protect capital.
- Flexibility : Border orders allow you to sell at different prices and still achieve the achievements you want.
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Limit setting orders
You can set a border order in the cryptocurrency trade. The following actions:
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- Set the price target : Enter the price you are ready to participate in the store (boundary order).
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Example of real life
Let’s say you want to buy 10 BTC for $ 20,000 with a marginal order defining the target – $ 19,500. Your platform will set a limit for you, and if the price reaches $ 19,700 before the order is over, it will be paid $ 19,500.
Conclusion
Using border orders can help with cryptocurrency traders such as Bitcoin, Ethereum and others for better trading results in risk, avoiding losses and shopping, depending on price level. By performing these steps and understanding how border orders work in cryptocurrency trading, you are successful in making information.
Remember that workouts make perfect! Start with a small space size and try different types of marginal orders to see what is best for you.