Binance is the world’s largest exchange by adjusted volume, but it lacks some key features. A major one is not being able to place a Sell Order and a Stop Loss Order together. Tools like Koinfox are solving that issue with Bracket Orders.
Koinfox platform, with Indian Crypto and Blockchain veterans like Ankitt Gaur, Opinder Preet, Andhul Dhir at helm are trying to solve the most pressing requirement of today’s crypto traders – Place orders and stop worrying about it.
We have already explained Bracket Orders and how Koinfox functions in a detailed article before, so let us focus this time around on how it is actually solving the aforementioned issue.
Stops are your Friends
Every trader hopes to never make a loss in a trade. But that is literally not possible. The best of the traders are winners a little over 50% times and that’s how they profit.
So, as traders our ultimate goal shouldn’t be to always make profit, but it should be to minimise the losses in case of a market turn towards the unexpected. That cannot be achieved without Stop orders or commonly known as Stop losses.
Stop Orders are orders that trigger at a certain price setup by trader, the price should be the amount of loss the trader can bear in case of a market downturn. For instance if a trader purchases 1000 XRP at $0.35, and setup the Stop order at $0.32 the trade is closed at this price. Now, if the prices go down to $0.25, the trader wouldn’t have lost a lot of value.
But on many exchanges, you can either put Stop orders or put Sell orders for your trade. In that case, you may also lose an opportunity on closing your order with high profits when the market pumps.
Setting Targets are Equally Important
We spoke about minimising losses being important, we must now look at how to maximise the profits. Anyone who has traded a couple times in crypto, will know that the market pumps are huge and short.
Markets can pump upto 10% within a minute and be back to just 5% almost immediately. That is why setting profit targets is equally important. If you set a profit target of 10%, you will not miss out on the rally.
Sure, there will be times when the markets pump enough to even go above your target, but you’re still in profit aren’t you? And how many times does that realistically happen?
Now do it Together!
You learnt about Stop losses and Targets. But you cannot use them both in certain exchanges, the most prominent being Binance. If you setup a stop loss, you cannot set a sell order. Similarly, if you set a sell order, you cannot set a stop limit order.
What can you do in such a situation?
Well, one solution is to use Koinfox tool for trading on Binance. Using Koinfox, you can setup what is known as a bracket order. A bracket order allows you to place a Buy order, a target sell order, and a stop loss price for when things go south.
For the more advanced users, they can even setup a trailing stop loss, thereby ensuring that as prices go up, continually the stop loss price is updated to minimise losses. For instance let us say the trailing stop loss for XRP is set at $0.001 and the original stop loss is $0.322. Now the price is $0.341. If the price goes up to $0.345 (up by $0.004), the new stop loss price is updated to $0.326.
That is not all, what happens if the market is going and. you still want to profit off of it? You can place sell orders with targets to buy back at lower prices. Say if you have 1000 XRP and the price is $0.33, sell it at the price and buy back at $0.29, you have profit of $40 and your assets remain intact.
Using Koinfox to trade on Binance can help you minimise losses and maximise profits with bracket orders. And if you register on Koinfox now, you can even get $25 worth KFT points.
Disclaimer: The article may contain forward looking statements. Coin Crunch India may or may not have the same opinion. Crypto currency trading carries financial risks, we request readers to take trading decisions after doing their own research. CCI will not be held responsible for any losses.