DigiFinex contract stop loss and take profit settings

DigiFinex offers customizable stop loss and take profit orders with advanced settings like stop price, close size, and activation type, enabling traders to effectively manage risk and maximize profits in the volatile cryptocurrency market.

Dec 01, 2024 at 10:00 am

DigiFinex Contract Stop Loss and Take Profit Settings: A Comprehensive Guide

As a leading player in the cryptocurrency derivatives market, DigiFinex provides a robust and feature-rich trading platform that caters to both experienced and novice traders. Among its many offerings, one of the most crucial aspects for traders is the ability to set stop loss and take profit orders. These orders are essential for managing risk and maximizing potential profits.

Understanding Stop Loss and Take Profit Orders

• A stop loss order is an order to sell a cryptocurrency asset when it reaches a certain price level, known as the stop price. The purpose of a stop loss order is to limit potential losses by automatically selling the asset if its price falls below a predetermined level.
• A take profit order, on the other hand, is an order to buy or sell a cryptocurrency asset when it reaches a desired profit target. By setting a take profit order, traders can lock in their profits at a specified price point, preventing them from being eroded by market fluctuations.

Customizing Stop Loss and Take Profit Orders on DigiFinex

DigiFinex offers traders a high degree of customization when setting stop loss and take profit orders. The settings available include:

• Stop Price: The price level at which the stop loss order will be triggered.
• Close Size: The portion of the position to be closed when the stop loss or take profit order is activated.
• Activation Type: Choose between trigger (immediate execution) or trailing (trails the current market price).

Step-by-Step Guide to Setting Stop Loss and Take Profit Orders on DigiFinex

1. Select the Trading Pair: From the top navigation bar on the DigiFinex trading platform, select the trading pair for which you want to set the stop loss and take profit orders.
2. Open the Order Entry Panel: Locate the "New Order" section on the left-hand side and click on "Advanced" to open the advanced order entry panel.
3. Toggle Stop Loss and Take Profit Switch: Under the "Advanced" tab, there is a toggle for "Stop Loss" and "Take Profit." Toggle both of these options to "On."

4. Configure Stop Loss Settings:

   • Stop Price: Specify the price level at which the stop loss order will be triggered.
   • Close Size: Determine the percentage of the position that should be closed when the stop loss is activated.
   • Activation Type: Choose either "Trigger" to execute the order immediately or "Trailing" to have the order trail the current market price.

5. Configure Take Profit Settings:

   • Take Profit Price: Specify the price level at which the take profit order will be triggered.
   • Close Size: Determine the percentage of the position that should be closed when the take profit is activated.
   • Activation Type: Choose either "Trigger" or "Trailing," as explained above.
6. Review and Confirm: Double-check the settings you have entered for both stop loss and take profit orders to ensure they are correct. Click "Buy" or "Sell" to activate the orders.

Tips for Using Stop Loss and Take Profit Orders

• Use Trailing Stop Loss: This type of stop loss dynamically adjusts its trigger price according to the current market movements. It helps protect against unfavorable price swings while allowing for potential profit growth.
• Set Realistic Take Profit Targets: Setting overly optimistic take profit targets can lead to missed opportunities if the market does not reach the desired level.
• Monitor Orders Regularly: Keep an eye on your stop loss and take profit orders, especially during volatile market conditions.