Success is just a matter of time. Despite high volatility, one has to wait for hours while the price is moving from “A” to “B” point when trading cryptocurrencies.
At times like this, you can waste your time controlling the open position … Or you might as well entrust this task to the Olymp Trade trading platform services.
What does “to control a position” mean?
An open position has a specific goal, which is profit-making. This goal can be presented as an exact amount of money. If you cannot calculate it, then the asset price should be your reference.
If the analysis shows that Ethereum is going to fall from $ 500 to $ 400, such a position should be closed at about $ 400. Controlling a position includes fixing a positive result.
You should also know at which price level you should admit a mistake. If it is $ 550, then you should close the position at this level.
If you do not implement these elements of position control, your trading will be a chaotic set of deals.
You will be constantly irritated by such questions as: “When should I close the deal?”, “When should I fix the profit?”, “When will the market reverse and I won’t be in the red?”.
How to get rid of manual control and save your time?
Traders often neglect the rules of position control, mainly because it takes much time.
However, on the Olymp Trade platform you can use automatic stop loss and take profit orders, which will save your time and close the trade when you have planned it to be closed.
The orders are set in the user’s personal account. Make sure that a checkbox that indicates adding this option is checked in the “Profile” section.
What are take profit and stop loss?
Take profit is an order that closes your trade once it reaches a certain level of profit.
Stop loss is an order that closes your trade when it reaches a certain negative result.
Both parameters can be set either when you open a trade, or after it has been opened.
There are two ways to set the orders when a position has been opened:
- you can set the quote, where a take profit or stop loss order should be placed;
- you can set the amount of profit or loss. As soon as the position reaches the set result, it will be closed automatically.
Here is an example to prove the efficiency of the orders’ work. A trader examined the crypto market before the beginning of a working day. He had several considerations on Ripple and Bitcoin.
The trader placed a Ripple long position. As he opened the trade, he set that it had to be closed automatically when the profit reached $ 350, or as soon as he lost $ 200.
His second position was a Bitcoin short one. He placed the take profit order at $ 6200 and set a stop loss order at $ 6600.
You can see in the screenshot that stop loss and take profit levels are automatically displayed on the asset chart, which enables a trader to “pull” them quickly to the price he or she needs.
An Olymp Trade user can implement take profit and stop loss orders without any time limit. They are designed to optimize your trade and time resources, and all you have to do is to suggest a lot of investment ideas and get the results.