What is a Stop Order in Crypto?

A stop order is a powerful tool used in Crypto trading to help manage risk and protect profits

A stop order is an instruction to buy or sell a cryptocurrency when it reaches a specific price level, known as the stop price

Once triggered, it becomes a market order and executes at the best available price

The most common type of stop order is the stop-loss

It's used to limit potential losses in a trade. When the crypto's price hits or goes below the stop price, the stop-loss order activates, selling the asset at the prevailing market price

Another type of stop order is the take-profit. It enables traders to lock in profits by setting a target price

When the cryptocurrency price reaches or surpasses the stop price, the take-profit order executes, securing gains

Stop orders are essential risk management tools. They protect traders from sudden market fluctuations and emotional decision-making