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Understanding of the Basics of Cryptocurrency Trade: Eternal, Reward and Stop Orders
Introduction
The world of cryptocurrency trading has become increasingly popular in recent years: millions of people worldwide are investing in digital currencies such as Bitcoin, Ethereum and others. While this increased visibility offers new opportunities for merchants, it also raises important questions about how to efficiently navigate markets. In this article, we will get upset into three essential concepts that every cryptocurrency trader should understand: eternal, reward and stop orders.
What are cryptocurrency trading platforms?
Cryptocurrency trading platforms provide a safe and comfortable environment for merchants to buy, sell and manage their digital currencies. These platforms usually offer functions such as real -time market data, charts and warnings to help traders be informed of market trends. Some popular cryptocurrency trading platforms include Binance, Coinbase and Kraken.
Permanent orders
A permanent order is a type of STOP-LOSS order that allows traders to set their own cryptocurrency, where they will automatically sell it if the price is lower than that level. This feature gives traders protection against potential losses by automatically closing a position when the desired profit margin is achieved.
Here’s how a permanent order works:
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- Causes Order : When the market price drops below the specified Stop-Loss price, the order causes and the trader sells his cryptocurrency to capture profits.
Salary orders
The order order is an order for a certain type of boundary that allows traders to set a specific cost of their cryptocurrency, where they will automatically buy it if the market price reaches or exceeds that level. This feature gives traders the opportunity to take advantage of the market conditions by buying their own cryptocurrency at low prices.
Here’s how the reward order works:
- Set the purchase price : The merchant determines the purchase price, which is the maximum price for which they will buy their cryptocurrency.
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stop orders
The stop order is a type of STOP-LOSS order that allows traders to automatically close positions when it falls below a certain price. This feature provides traders protection against potential losses by quickly closing positions while other traders can be manipulated.
Here’s how the stop order works:
- Set the suspension price : The merchant sets the suspension price, which is the minimum price for which they will sell their cryptocurrency.
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Main differences between permanent, reward and suspension orders
While all three orders give traders a way to manage risks and markets, there are main differences between them:
* Permanent and Award
: A permanent order allows you to keep buying or selling at a set price, and the reward order allows you to buy at a certain price.
* STOP-LOSS and Take-Profit : Stop Loss order automatically closes position when it falls below a certain price and the search profit order automatically buys cryptocurrency when it reaches or outperforms that level.
Conclusion
Cryptocurrency trade requires a strong understanding of market trends and risk management methods.