This week, we listed Monero on the BTSE exchange, but we’re not stopping there – on the contrary! today, we’re happy to share that we have added trailing stop-loss market orders to our futures market.
What Is a Trailing Stop Order?
A trailing stop-loss order, often shortened to trailing stop, is a common order type in the trading world. Unlike standard stop-loss orders, trailing stop-loss orders are not glued to a specific price point, but rather a set distance from the price of an asset.
You can use a trailing stop-loss order for both long and short positions.
BTSE’s trailing stop-loss orders are market orders only. When the price of an asset breaches a trader’s trailing stop, the associated position immediately enters the order book and picks up the closest orders at the time, closing (or opening) the trader’s position. (Slippage may occur, depending on liquidity.)
In contrast to traditional stop-loss orders, trailing stops automatically adjust to changing asset prices.
Trailing Stop-Loss Sell Example
Bitcoin’s current price is $10,000. You are long 1 BTC and set a trailing stop sell of 1 BTC at a $100 trail value.
This means that if Bitcoin rises to $10,500, your stop-loss trigger price becomes $10,400.
If Bitcoin continues to rise from $10,500 to $11,000, then your trailing stop trigger price becomes $10,900.
If Bitcoin drops down to $10,900, your trailing stop-loss sell triggers and your 1 BTC position enters the order book, selling at the best price in the order book at the time.
Putting In Your Trailing Stop-Loss Order
Checking the trailing stop-loss order box changes the layout to a separate order form. Enter the quantity you want to trade as well as the trail value/amount, which is the distance in dollars from the best price recorded on the BTSE exchange at the time, depending on liquidity. In the close-only box, set it to true if you want the quantity to amend to ensure the trailing stop reduces position only. This means that you can set your trailing stop-loss to a close part of your position instead of the entire position.
In the price trigger box, indicate whether you want your trailing stop to trigger based on the last price traded on the BTSE exchange, or based on the BTSE mark price for the asset you are trading.
BTSE’s mark price is an anti-manipulation fair price for the asset you are trading. Using crypto’s top asset as an example, BTSE takes Bitcoin’s average trading price at any given point, based on prices from multiple exchanges, and adds in additional safeguards to comprise its Bitcoin mark price.
If your trailing stop-loss order triggers, BTSE automatically submits a market order with the proper amount specified in the order, closing your position.
To try our new feature, simply hop on over to BTSE.com!
Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at feedback@btse.com or on Twitter @BTSE_Official.
Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.
