What is an example of using trailing stop loss in the world of cryptocurrency?

Can you provide an example of how to use trailing stop loss in the world of cryptocurrency? Please explain the concept and steps involved in setting up a trailing stop loss order for a cryptocurrency trade.

1 answers
- Using a trailing stop loss order can be a great way to protect your profits in cryptocurrency trading. For example, let's say you're trading Ethereum and you bought it at $500. You set a trailing stop loss order at 10%. If the price of Ethereum increases to $550, your stop loss order will be triggered at $495 (10% below the peak price). If the price continues to rise, the stop loss order will trail the price by 10%. However, if the price starts to decline, the stop loss order will remain at $495, protecting your profits. This way, you can secure your gains and minimize potential losses in a volatile market.
Mar 20, 2022 · 3 years ago
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