Market Cap: $2.7258T 0.120%
Volume(24h): $73.4951B 63.980%
Fear & Greed Index:

24 - Extreme Fear

  • Market Cap: $2.7258T 0.120%
  • Volume(24h): $73.4951B 63.980%
  • Fear & Greed Index:
  • Market Cap: $2.7258T 0.120%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top Cryptospedia

Select Language

Select Language

Select Currency

Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos

Bitstamp perpetual contract stop profit and stop loss tutorial

Using Bitstamp's perpetual contracts, traders can protect against market volatility by setting stop profit orders to sell at a predetermined higher price and stop loss orders to buy at a lower price, safeguarding their trades and maximizing returns.

Nov 09, 2024 at 11:53 am

Bitstamp Perpetual Contract Stop Profit and Stop Loss Tutorial

Introduction

Perpetual contracts are a type of derivative instrument that allows traders to gain exposure to the price of an underlying asset without having to own it physically. They are similar to futures contracts, but they do not have an expiration date, so they can be held indefinitely.

Stop profit and stop loss orders are two of the most important risk management tools available to traders. A stop profit order is an order to sell an asset when it reaches a certain price, while a stop loss order is an order to buy an asset when it reaches a certain price. These orders can help to protect traders from losses if the market moves against them.

How to Place a Stop Profit Order

To place a stop profit order on Bitstamp, follow these steps:

  1. Log in to your Bitstamp account.
  2. Click on the "Trading" tab.
  3. Select the perpetual contract you want to trade.
  4. Click on the "Stop Profit" tab.
  5. Enter the price at which you want to sell the contract.
  6. Click on the "Place Order" button.

How to Place a Stop Loss Order

To place a stop loss order on Bitstamp, follow these steps:

  1. Log in to your Bitstamp account.
  2. Click on the "Trading" tab.
  3. Select the perpetual contract you want to trade.
  4. Click on the "Stop Loss" tab.
  5. Enter the price at which you want to buy the contract.
  6. Click on the "Place Order" button.

Note: You cannot place a stop profit or stop loss order while the market is closed since the liquidity is low and the order may not execute properly.

Example

Let's say you are bullish on Bitcoin and you want to buy a perpetual contract with 10x leverage. You believe that the price of Bitcoin will continue to rise, but you also want to protect yourself from losses if the market moves against you.

You could place a stop profit order at $10,000 and a stop loss order at $9,000. This means that if the price of Bitcoin rises to $10,000, your contract will be automatically sold, and if the price of Bitcoin falls to $9,000, your contract will be automatically bought.

Conclusion

Placing stop orders is one of the best ways to manage your risk and protect your profits when trading perpetual contracts on any exchange, and this guide especially caters to the process on Bitstamp.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Related knowledge

How to set risk limits in OKX contracts?

How to set risk limits in OKX contracts?

Mar 17,2025 at 07:42pm

Key Points:Understanding OKX's risk management tools is crucial for safe contract trading.Setting appropriate risk limits involves defining position size, stop-loss orders, and take-profit orders.OKX offers several features to assist in managing risk, including margin level alerts and automated liquidation protection.Careful planning and adherence to a ...

What is the difference between the mark price and the latest price on Binance Futures?

What is the difference between the mark price and the latest price on Binance Futures?

Mar 17,2025 at 02:36pm

Key Points:Mark Price: A fair price calculated using multiple exchanges' prices, minimizing manipulation. It's crucial for funding rates and liquidation calculations.Latest Price: The most recent trade price on Binance Futures. Subject to volatility and potential manipulation.Discrepancies: Differences arise due to market depth, order book imbalances, a...

What is the difference between limit orders and market orders on Binance Futures?

What is the difference between limit orders and market orders on Binance Futures?

Mar 17,2025 at 04:10pm

Key Points:Limit Orders: Specify the price you're willing to buy or sell at. Execution is not guaranteed, but you control the price.Market Orders: Buy or sell at the best available price immediately. Execution is guaranteed, but the price may be less favorable than desired.Binance Futures Context: Both order types are crucial for managing risk and execu...

How to operate cross-product arbitrage of Bitcoin contracts?

How to operate cross-product arbitrage of Bitcoin contracts?

Mar 17,2025 at 01:00pm

Key Points:Understanding Bitcoin contract arbitrage relies on exploiting price discrepancies across different exchanges.Successful arbitrage requires speed, low latency connections, and sophisticated trading algorithms.Risk management is crucial, as market volatility and slippage can negate profits.Fees and slippage significantly impact profitability. C...

What is the difference between the mark price and the latest price of Bitcoin contracts?

What is the difference between the mark price and the latest price of Bitcoin contracts?

Mar 17,2025 at 04:35pm

Key Points:Mark Price: A fair and unbiased price calculated using multiple exchanges' data, minimizing manipulation. It's crucial for funding calculations and preventing liquidation.Latest Price: The most recent trade price on a specific exchange. It's susceptible to manipulation and volatility. It reflects real-time market activity but lacks the stabil...

How is the funding rate of Bitcoin contracts calculated?

How is the funding rate of Bitcoin contracts calculated?

Mar 17,2025 at 10:30am

Key Points:Bitcoin perpetual contracts utilize funding rates to align the price of the contract with the spot price of Bitcoin.The funding rate is calculated based on the difference between the perpetual contract price and the spot price, and the demand for long or short positions.A positive funding rate means long positions pay short positions, and vic...

How to set risk limits in OKX contracts?

How to set risk limits in OKX contracts?

Mar 17,2025 at 07:42pm

Key Points:Understanding OKX's risk management tools is crucial for safe contract trading.Setting appropriate risk limits involves defining position size, stop-loss orders, and take-profit orders.OKX offers several features to assist in managing risk, including margin level alerts and automated liquidation protection.Careful planning and adherence to a ...

What is the difference between the mark price and the latest price on Binance Futures?

What is the difference between the mark price and the latest price on Binance Futures?

Mar 17,2025 at 02:36pm

Key Points:Mark Price: A fair price calculated using multiple exchanges' prices, minimizing manipulation. It's crucial for funding rates and liquidation calculations.Latest Price: The most recent trade price on Binance Futures. Subject to volatility and potential manipulation.Discrepancies: Differences arise due to market depth, order book imbalances, a...

What is the difference between limit orders and market orders on Binance Futures?

What is the difference between limit orders and market orders on Binance Futures?

Mar 17,2025 at 04:10pm

Key Points:Limit Orders: Specify the price you're willing to buy or sell at. Execution is not guaranteed, but you control the price.Market Orders: Buy or sell at the best available price immediately. Execution is guaranteed, but the price may be less favorable than desired.Binance Futures Context: Both order types are crucial for managing risk and execu...

How to operate cross-product arbitrage of Bitcoin contracts?

How to operate cross-product arbitrage of Bitcoin contracts?

Mar 17,2025 at 01:00pm

Key Points:Understanding Bitcoin contract arbitrage relies on exploiting price discrepancies across different exchanges.Successful arbitrage requires speed, low latency connections, and sophisticated trading algorithms.Risk management is crucial, as market volatility and slippage can negate profits.Fees and slippage significantly impact profitability. C...

What is the difference between the mark price and the latest price of Bitcoin contracts?

What is the difference between the mark price and the latest price of Bitcoin contracts?

Mar 17,2025 at 04:35pm

Key Points:Mark Price: A fair and unbiased price calculated using multiple exchanges' data, minimizing manipulation. It's crucial for funding calculations and preventing liquidation.Latest Price: The most recent trade price on a specific exchange. It's susceptible to manipulation and volatility. It reflects real-time market activity but lacks the stabil...

How is the funding rate of Bitcoin contracts calculated?

How is the funding rate of Bitcoin contracts calculated?

Mar 17,2025 at 10:30am

Key Points:Bitcoin perpetual contracts utilize funding rates to align the price of the contract with the spot price of Bitcoin.The funding rate is calculated based on the difference between the perpetual contract price and the spot price, and the demand for long or short positions.A positive funding rate means long positions pay short positions, and vic...

See all articles

User not found or password invalid

Your input is correct