OlympTrade Take Profit and Stop Loss

Success is often a matter of being patient. Despite the high volatility when trading cryptocurrencies, traders often have to wait for hours before the price of an asset moves from one point to another.

During times like these, you will be wasting your time monitoring an open position. It would in fact be much better if you use the services available on Olymp Trade’s trading platform to control your position.

Controlling a Position

Positions are opened with a specific goal and that is to make a profit. This goal is often expressed as a specific amount of money. To calculate this, the asset price and how much you expect it to move is used as a reference.

If you analysis for example shows that Ethereum will be dropping from $400 to $300, your position should be closed at around $300. To control the position you should fix the positive result.

It is also important to know the price level at which you will admit that you’ve made a mistake. If this is for example at $450, the position should be closed at this level.

If you don’t implement these control elements, you run the risk of landing in a situation where your trading turns into a chaotic set of deals.

You will constantly be interrupted by trying to figure out when to close the deal, when to take profit, and what to do if the market reverses.

Save Time by Getting Rid Of Manual Controls

Traders often don’t bother with the rules of position control because they feel it takes too much time.

On the Olymp Trade platform you can however use automatic take profit and stop loss orders, which will not only save you time, but will also close the trade automatically when you want it to be closed.

You can configure these orders in your personal account. Ensure that you have ticked the checkbox for these options in the “Profile” section as shown in the image below.

OlympTrade Take Profit and Stop Loss
OlympTrade Take Profit and Stop Loss

Stop Loss and Take Profit Order Definitions

A Stop loss is an order that will close a trade when a specific negative result is reached.

A Take profit is an order that will close a trade when a specific profit level is reached.

These parameters can both be set while a trade is being opened, or after it has been opened.

Olymptrade take profit and stop loss
Olymptrade take profit and stop loss

When a position has been opened the orders can be set in one of two ways:

  • Set the profit or loss amount. When the set result is reached, the position will be closed automatically.
  • Set the quote and specify where a stop loss or take profit order should be placed.
Olymptrade the set result
Olymptrade the set result

To demonstrate how efficiently the orders can work, let’s look at an example. A trader looked at the crypto market and decided to open positions on Ripple and Bitcoin.

The first order placed was a long position on Ripple. While opening the trade, a Take Profit was set for $350, and a Stop Loss was set for $200.

Olymptrade trades closed automatically
Olymptrade trades closed automatically

The second trade was a short position on Bitcoin. The take profit order was set at $6 200 and the stop loss order at $6 600.

Olymptrade stop loss and take profit levels
Olymptrade stop loss and take profit levels

As is shown in the image, the take profit and stop loss levels are displayed on the asset chart automatically, which allows the trader to drag them to the price levels they want.

Traders on Olymp Trade can set stop loss and take profit orders without time limits. These tools have been designed to optimize trades and maximize time resources.

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