Title: understanding of cryptocurrency trade bases: perpetual, reward and arrest
Introduction
The world of cryptocurrency trade has become more and more popular in recent years, with millions of people around the world who invest in digital currencies such as Bitcoin, Ethereum and others. While this greater visibility offers new opportunities for traders, it also raises important questions on how to make the markets efficiently browse. In this article, we will deepen three essential concepts that every cryptocurrency trader should understand: perpetual, reward and stop commands.
What are the Cryptocurrency trading platforms?
The cryptocurrency trading platforms offer a safe and intuitive environment for traders to buy, sell and manage their digital currencies. These platforms generally provide functions, such as real market data, graphics and notifications to help operators remain informed about market trends. Some popular cryptocurrency trading platforms include binance, coinbase and Kraken.
Perpetui commands
A perpetual order is a type of stop order that allows traders to set a price for cryptocurrency in which it will automatically sell it if the price drops below this level. This feature offers traders protection compared to potential losses that automatically close the position when you reach the desired profit margin.
Here’s how a perpetual order works:
- Set a stop-loss price : The trader sets a stop price, which is the minimum price at which cryptocurrency will sell.
- Establish a price for a profit for profit : The trader sets a take -off price, which is the maximum price at which cryptocurrency will be purchased.
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Reward orders
A reward order is a type of limit order that allows traders to set a specific price for their cryptocurrency in which it will automatically purchase if the market price reaches or exceeds this level. This feature offers traders the opportunity to exploit the favorable market conditions, acquiring and cryptocurrency when the prices are low.
Here’s how a reward order works:
- sets a purchase price : The trader sets a purchase price, which is the maximum price at which cryptocurrency will buy.
- Activate the order : When the market price reaches or exceeds the purchase price of the set, the order triggers and the trader purchases cryptocurrency.
stop orders
A stop order is a stop order type that allows traders to automatically close a position when it drops below a particular price. This feature offers the protection of the trader against potential fast closing losses before they can be manipulated by other traders.
Here’s how a stop order works:
- sets a stop price : The trader sets a stop price, which is the minimum price at which cryptocurrency will sell.
- Activate the order : When the market price drops below the fixed stop price, the order triggers and the position is closed.
Key differences between perpetual commands, reward and stop
While all three commands offer traders to manage the risk and profit on the markets, there are key differences between them:
* Perpetual vs. Reward
: A perpetual order allows continuous purchase or sale at a predetermined price, while a reward order allows you to buy at a specific price.
* Stop-Loss Vs. Take-profit : A stop ordering order automatically closes a position when it descends below a certain price, while a profit command automatically regains its cryptocurrency when it reaches or exceeds this level.
Conclusion
The trading of cryptocurrencies requires a solid understanding of market trends and risk management techniques.
