What are the advantages and disadvantages of using trailing stop loss compared to trailing stop limit on Fidelity for cryptocurrency trading?

3 answers

• Erryl Crespo FelixDec 19, 2023 · 2 years ago
  Trailing stop loss orders can be a useful tool for managing risk in cryptocurrency trading. They allow you to automatically sell a position if the price drops below a certain percentage from its highest point. This can help protect your profits and limit potential losses. However, one disadvantage is that if the price quickly drops and then rebounds, you may end up selling at a lower price than you would have liked. Trailing stop limit orders, on the other hand, allow you to set a specific price at which you want to sell. This can give you more control over the execution price, but it also means that if the price drops quickly and doesn't reach your limit, you may miss out on selling altogether. Overall, the choice between trailing stop loss and trailing stop limit orders depends on your trading strategy and risk tolerance.
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• BhawnaApr 09, 2021 · 5 years ago
  When it comes to trailing stop loss vs trailing stop limit on Fidelity for cryptocurrency trading, it's important to consider your trading goals and risk tolerance. Trailing stop loss orders can help protect your profits and limit losses by automatically selling if the price drops below a certain percentage. However, they may also result in selling at a lower price if the price quickly rebounds. On the other hand, trailing stop limit orders allow you to set a specific price at which you want to sell, giving you more control over the execution price. But if the price drops quickly and doesn't reach your limit, you may miss out on selling. It's a trade-off between protection and control. Choose the option that aligns with your trading strategy and risk appetite.
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• imaneMay 22, 2025 · 9 months ago
  BYDFi, a popular cryptocurrency exchange, offers trailing stop loss and trailing stop limit orders for traders. Trailing stop loss orders can be beneficial for managing risk in cryptocurrency trading, as they automatically sell a position if the price drops below a certain percentage. However, there is a risk of selling at a lower price if the price quickly rebounds. Trailing stop limit orders, on the other hand, allow traders to set a specific price at which they want to sell, providing more control over the execution price. It's important to consider your trading strategy and risk tolerance when choosing between trailing stop loss and trailing stop limit orders on BYDFi or any other exchange.
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