What are the stop quote limit strategies for trading digital currencies on Merrill Edge?

3 answers

• Dec 27, 2021 · 3 years ago
  One effective stop quote limit strategy for trading digital currencies on Merrill Edge is to set a trailing stop order. This allows you to automatically adjust your stop price as the market price of the currency fluctuates. By setting a trailing stop order with a certain percentage or dollar amount, you can protect your profits and limit potential losses. For example, if you set a trailing stop order with a 5% trailing stop, your stop price will move up as the market price increases, but will not move down if the market price decreases. This way, you can lock in your profits while still allowing for potential upside.
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• Dec 27, 2021 · 3 years ago
  Another strategy is to use a stop limit order. With a stop limit order, you set both a stop price and a limit price. When the market price reaches the stop price, the order is triggered and becomes a limit order. This means that the order will only be executed at the limit price or better. By using a stop limit order, you can have more control over the execution price of your trade and avoid unexpected slippage. However, it's important to note that there is a risk of the order not being executed if the market price quickly moves past your limit price.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a popular digital currency exchange, recommends using a combination of stop limit orders and trailing stop orders for trading digital currencies on Merrill Edge. This allows you to have both control over the execution price and the ability to protect your profits. By setting a stop limit order with a reasonable limit price and a trailing stop order with a suitable trailing percentage, you can effectively manage your risk and maximize your potential gains. Remember to regularly review and adjust your stop quote limit strategies based on market conditions and your investment goals.
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