What is stop loss and how it works

[rahmatullah9305]

Stop loss is the level where you would want to set your maximum bearable loss for a specific trade. It helps you save some dollars rather than losing everything in that trade. Stop loss also helps you decide your risk:reward and calculating it while trading helps you gain much better profits. On Binance, you will need to set two stops (one for take profit and one for stop loss) because after their update, we cannot see any other option but to add two stops to prevent our position from going out of hands.

Speaking of stop loss will not work optimally as we expect, many people use a stop loss strategy with the result of minimizing losses. like you said, it's better to save a few bucks than to lose it all. The market is very volatile all the techniques we use very rarely work 100% as expected right. I in the crypto space have had some bad experiences and so far I have studied various trading techniques including stop loss and this works to minimize losses, can't prevent losses accurately.

[1715115595]

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[adiwibowosakti]

Let me explain let's assume you entered a trade and you have started seeing profit and you still want to hold on to your position because your analysis is still in the direction of your profit you can shift your stop loss either to your entry point or above your entry point that way you will exit with a zero loss if the trade goes against you

[asus09]

I know with feature and stop loss menu on exchange market but never use it keep holding although price dump, I think have choose with good coin to buy and invest so why to worry with stop loss, maybe its worth for using stop loss and less percent of your fund loss only by using stop loss and you can take recovery with buying coin on other lower price.

[Bombbi]

Stop loss is set to sell within the tolerable loss range when the currency price continues to fall. Setting a stop loss can avoid the maximum economic loss in the transaction and help reduce risks.

[SacriFries11]

That brings me down to my question, what is the best way to apply the stop loss features that will guarantee zero loss, and which exchange has the best and easy-to-use live trading features.

Guarantee zero loss ? No I think not. I think stop loss is to prevent you from lossing more money because the price is going down. Like other techniques, it still has a risk because after cutting your loss, price might go up without your proper analyzation like what happened to the beginner in trading I've met a couple of months ago. But still, it is good in a way that you did not loss everything and still save some of your money.

[irsykes]

That brings me down to my question, what is the best way to apply the stop loss features that will guarantee zero loss, and which exchange has the best and easy-to-use live trading features.

For a note, there are no zero loss in trading. Stop loss is something that help us minimize our loss, or at least help people who not much have time to see market. About zero loss, i think it is better to focus how to gain profit although a little, than focus on how much we will lose because profit and lose all have possibility especially in future trading.

[checkmatesir]

Literally the questions I was waiting for, stop loss is even the best source of saving a trader himself from a loss whether the loss can be more or even sometimes a little, It is used in binance, and another thing stop loss is a source through which someone can be safe from the further loss which he had made earlier.

[NicNacCoin]

Stop loss is a way to prevent your profit from being lost.If you keep with stop loss, your chances of getting loss are very low.Especially those who understand trading well and take trading all the time, they keep with stop loss. We also always keep stop loss and we also always keep with stop loss and stop profit.

[blockman]

Stop loss is a way to prevent your profit from being lost.If you keep with stop loss, your chances of getting loss are very low.Especially those who understand trading well and take trading all the time, they keep with stop loss. We also always keep stop loss and we also always keep with stop loss and stop profit.

Not only profit but as well as your capital. There are times that you don't get profit as you start and you're looking at your capital to start to incur losses.
That's why stop-loss is there for you to minimize the potential loss that you're about to make. Because if you don't do that, you're only losing money without doing anything.
This is whether you're a trader and even someone who holds, they can also do the thing.

[Jazzi Mahesh]

A stop-loss order is believed to be a buy or sell order placed to limit the losses when you would be fearing that the prices might move against your trade.

[South Park]

Trading risks in the crypto market are very high, and stop loss is a very important part of trading.
Setting a stop loss in the transaction can manage the loss in the transaction and minimize the loss. It can also protect funds from market fluctuations and prevent the loss of all funds.

This is what many do not get, a stop loss is not only there to take you out of a bad trade and protect your capital, it also protects you from taking huge risks, this is is why it is important to have one as the volatility of the market of cryptocurrencies can be extreme, and if at the same time you are trading without a stop loss and you are using leverage then this could lead to even more extreme losses, as leverage basically multiplies your risk as many times as the leverage you are taking.

[XCANA]

That brings me down to my question, what is the best way to apply the stop loss features that will guarantee zero loss, and which exchange has the best and easy-to-use live trading features.

It all depends on the trading features you are referring to because if you are using spot in my opinion you don't really need to set stop loss any time you set your take profit. I have been doing this in Binance for years now and is working for me. But if you are trading with future or margin you will really have to if not you may lose all your capital.

[yaurora]

Stop loss is a trading technique that may help you prevent large losses; you can use it every time you trade, and it's a highly safe and helpful instrument for protecting your money from market volatility. In reality, if you want to, you can study this type of things on YouTube. Because, in my opinion, watching videos is more informative than other methods of learning because you can apply it quickly as if you were in a real training, especially if it's a step-by-step tutorial. It's a very basic way if you're really interested in having such knowledge when it comes to trading.

[South Park]

That brings me down to my question, what is the best way to apply the stop loss features that will guarantee zero loss, and which exchange has the best and easy-to-use live trading features.

It all depends on the trading features you are referring to because if you are using spot in my opinion you don't really need to set stop loss any time you set your take profit. I have been doing this in Binance for years now and is working for me. But if you are trading with future or margin you will really have to if not you may lose all your capital.

Every single person has their own strategy to trade the markets however I have always thought that a stop loss is a must in any trading strategy, I know that most of the time a stop loss is going to take you out early from some profitable trades and this is especially true when the market is ranging, but since we do not know when we are going to see an important decrease in the price then it is imperative to have a stop loss at all times so it protects you from the instances in which the market begins to go down incredibly fast and you are not in front of your computer to stop the trade manually.

[BIN-BIN]

Trading risks in the crypto market are very high, and stop-loss is a very important part of trading.
Setting a stop loss in the transaction can manage the loss in the transaction and minimize the loss. It can also protect funds from market fluctuations and prevent the loss of all funds.

I guess this is the major function of the stop lose features on some exchanges, to help protect your capital gains from depreciating when the market crash it execute the trade on your behalf when the price reached the amount set on the stop lose the trade automatically get executed.

[doremonchina]

stop loss is the main point of trading which can save you from any kind of losses becouse if you buy some coin where the coin price is high and the market is quickely dump and more dump then you can use stop loss and if market is very low and hit you stop loss your coin will autometicaly sold and you save from losses.

[BIN-BIN]

A stop-loss order is believed to be a buy or sell order placed to limit the losses when you would be fearing that the prices might move against your trade.

I think you are mixing up things here, stop loss is a trading price limit that is set in exchange to help execute the trade on your behalf when the set price limit is reached in other to avoid a total loss.