A trailing stop order is an order type that keeps track of a position and adjusts the stop-loss level based on price movement. This feature allows traders to lock in profit and minimize losses when the market moves favorably.
Bybit’s unique one-click TP&SL interface lets traders set their Take-Profit and Stop-Loss orders directly from the “Order Confirmation” window while placing limit or market orders, saving them time and reducing stress. It also eliminates the need to constantly monitor the market and enables users to quickly adapt their trading strategy when necessary.
The Trailing Stop is a great way to control risk and secure profits while trading spot forex and other cryptocurrencies. It’s also a great way to minimize loss exposure in volatile markets.
Traders can place a trailing stop order by entering a trigger price and setting the trailing distance in points. Then, the trailing stop order will move up by a fixed amount each time the stock price goes up, thereby locking in their profits as long as the price continues to go up.
Trailing stops are especially useful if an asset is moving up in price and traders don’t know at what point to set their take profit levels. This is often the case with cryptocurrencies, where they can start to grow rapidly, making it difficult to set a take-profit at the right level.
Bybit trailing stop order helps traders lock in profit when the market moves favorablely, minimizing losses and maximizing their gains. It’s easy to use, requires no manual input, and can be adjusted based on price movement.
The trailing stop’s trigger price is based on the last trade price of your account, and it’s automatically updated each time the market closes. It can also be adjusted based on the current market price or your positions average.
It also allows you to set a maximum number of times that the order will be moved (stepSize) before it is automatically adjusted. This is useful when you want to limit your loss and ensure that you only lose a certain percentage of your total deposit.
For instance, if you have an open long position and the price is rising fast, you can set your trailing stop to be $10 below your entry. This will prevent your stop from being hit if the price rises further and you don’t have enough money in your account to cover the loss.
Alternatively, you can set your trailing stop to always be 1% below your entry, enabling you to keep your position open as long as it’s profitable. However, you must make sure that your position isn’t too big or you’ll end up losing too much money.
Bybit’s trailing stop is an important tool for managing your risk and minimizing losses when trading currencies. It can also help you maximize your profits if the market starts to go up in price, allowing you to continue to hold your position and ride the trend until the price reaches a set take-profit value.