How to set stop loss on AscendEX contract

Understanding the concept of stop-loss orders and setting them on AscendEX's contract trading service is key to mitigating risk and maximizing profits in futures trading.

Nov 23, 2024 at 01:50 am

How to Set Stop Loss on AscendEX Contract

Setting a stop-loss order is a crucial risk management technique in futures trading, as it helps traders limit their potential losses and maximize their profits. AscendEX, a leading cryptocurrency exchange, offers a user-friendly platform for setting stop-loss orders on its contract trading service. This comprehensive guide will provide step-by-step instructions on how to set a stop-loss order on AscendEX contract, ensuring that your trading strategies are protected.

Understanding Stop Loss Orders

Before delving into the steps, it's essential to understand the concept of a stop-loss order. A stop-loss order is a conditional order placed with the exchange to automatically sell or buy an asset when it reaches a predetermined price. This price level is known as the "stop price." By setting a stop-loss order, traders can limit their maximum possible loss on a trade.

Steps to Set Stop Loss on AscendEX Contract

1. Log in to AscendEX Account: Access your AscendEX account by logging in with your credentials. Once logged in, navigate to the "Futures" section of the platform.
2. Select Trading Pair: Choose the trading pair you wish to trade on the futures market. AscendEX offers various trading pairs, including popular cryptocurrencies like BTC/USDT and ETH/USDT.
3. Open the Order Form: Locate the order form on the right-hand side of the screen. You will see two tabs: "Limit Order" and "Market Order." Select the "Limit Order" tab, which allows you to set advanced order types, including stop-loss orders.
4. Configure Stop Loss Order: Within the "Limit Order" tab, you will find various order parameters. To set a stop-loss order, select the "Stop" order type. This will reveal additional fields where you can specify the stop price and other order details.
5. Set Stop Price: Enter the desired stop price in the "Stop Price" field. This is the price at which the stop-loss order will be triggered and your position will be closed. The stop price should be carefully chosen based on your risk tolerance and trading strategy.
6. Set Order Quantity: Specify the number of contracts you wish to trade in the "Quantity" field. Ensure that the order quantity aligns with your risk appetite and trading objectives.
7. Set Limit Price: The "Limit Price" field allows you to set the price at which the stop-loss order will be executed. This price should be below the stop price for a sell stop order and above the stop price for a buy stop order.
8. Review and Place Order: Once all the order parameters are configured, carefully review the details to ensure accuracy. If satisfied, click the "Place Order" button to submit your stop-loss order to the exchange.
9. Monitor Order Execution: After placing the stop-loss order, monitor your order status from the "Orders" section of the platform. You will receive notifications when the order is filled, and your position is closed at the specified stop price.

Conclusion

Setting a stop-loss order on AscendEX contract is a valuable risk management tool that can protect your trading capital from substantial losses. By following the comprehensive steps outlined in this guide, you can effectively implement stop-loss orders into your trading strategies on AscendEX. Remember, understanding the concept and considering your risk tolerance is crucial for successful stop-loss order execution.