What is the meaning of 'stopped out' in the context of cryptocurrency trading?

3 answers

• Mar 18, 2022 · 3 years ago
  When you are 'stopped out' in cryptocurrency trading, it means that your position has been automatically closed by the exchange due to reaching a predetermined stop-loss level. This is done to limit potential losses and manage risk. It is a common practice among traders to set stop-loss orders to protect their investments from significant downturns in the market. When the price of a cryptocurrency reaches the stop-loss level, the exchange will automatically sell the position, effectively stopping you out of the trade.
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• Mar 18, 2022 · 3 years ago
  Being 'stopped out' in cryptocurrency trading is like getting kicked out of a party when things start to go south. It's a mechanism designed to protect traders from excessive losses. When the price of a cryptocurrency reaches a certain level, which is set by the trader as a stop-loss order, the exchange will automatically close the position. This can happen when the market is volatile and the price drops rapidly. So, think of it as a safety net that prevents you from falling too deep into the red.
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• Mar 18, 2022 · 3 years ago
  When you're 'stopped out' in cryptocurrency trading, it means that your position has been liquidated by the exchange. This can happen when the price of a cryptocurrency reaches a predetermined level, triggering a stop-loss order. The exchange will automatically sell your position to limit potential losses. It's a risk management strategy used by traders to protect their capital. So, if you're stopped out, it means that your trade didn't go as planned and you've incurred a loss.
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