Can HTX contract set the stop-profit and stop-loss ratio? How to calculate the percentage

HTX users can set stop-profit and stop-loss orders to manage risk; calculate percentages using: (Stop Price - Entry Price) / Entry Price * 100.

May 07, 2025 at 04:29 am

Can HTX contract set the stop-profit and stop-loss ratio? How to calculate the percentage

Trading cryptocurrencies involves a significant amount of risk, and one way traders manage this risk is by setting stop-profit and stop-loss orders. HTX, a prominent cryptocurrency exchange, offers these tools to its users. This article will explain how to set the stop-profit and stop-loss ratios on HTX and how to calculate the percentage for these orders.

Understanding Stop-Profit and Stop-Loss Orders

Stop-profit and stop-loss orders are essential tools for traders to manage their positions effectively. A stop-profit order automatically closes a trade when the price reaches a certain level of profit, ensuring that the trader locks in gains. Conversely, a stop-loss order is designed to limit losses by closing a trade when the price moves unfavorably beyond a predetermined level.

Setting Up Stop-Profit and Stop-Loss on HTX

HTX allows users to set both stop-profit and stop-loss orders directly from their trading interface. Here's how you can do it:

• Log into your HTX account and navigate to the trading section.
• Select the cryptocurrency pair you wish to trade.
• Open a new order by clicking on the "Order" button.
• Choose the type of order you want to place. For stop-profit and stop-loss, you will typically use a "Limit" or "Market" order with additional conditions.
• Set the stop-profit level by entering the price at which you want the trade to close for profit. For example, if you bought Bitcoin at $30,000 and want to secure a profit at $33,000, you would set the stop-profit at $33,000.
• Set the stop-loss level by entering the price at which you want the trade to close to limit losses. Using the same example, if you want to limit your loss at $28,000, you would set the stop-loss at $28,000.
• Confirm the order and monitor your trade.

Calculating the Stop-Profit and Stop-Loss Percentage

Calculating the percentage for stop-profit and stop-loss orders is crucial for effective risk management. Here's how you can calculate these percentages:

• Stop-Profit Percentage: To calculate the stop-profit percentage, use the following formula:
  [
  \text{Stop-Profit Percentage} = \left( \frac{\text{Stop-Profit Price} - \text{Entry Price}}{\text{Entry Price}} \right) \times 100
  ]
  For example, if you bought Bitcoin at $30,000 and set a stop-profit at $33,000:
  [
  \text{Stop-Profit Percentage} = \left( \frac{33,000 - 30,000}{30,000} \right) \times 100 = 10\%
  ]

• Stop-Loss Percentage: To calculate the stop-loss percentage, use the following formula:
  [
  \text{Stop-Loss Percentage} = \left( \frac{\text{Entry Price} - \text{Stop-Loss Price}}{\text{Entry Price}} \right) \times 100
  ]
  Using the same example, if you set a stop-loss at $28,000:
  [
  \text{Stop-Loss Percentage} = \left( \frac{30,000 - 28,000}{30,000} \right) \times 100 = 6.67\%
  ]

Adjusting Stop-Profit and Stop-Loss Orders

Traders often need to adjust their stop-profit and stop-loss orders based on market conditions. HTX allows users to modify these orders easily:

• Navigate to the "Open Orders" section in your HTX account.
• Find the order you wish to modify.
• Click on the order to open the modification window.
• Adjust the stop-profit or stop-loss price as needed.
• Confirm the changes to update the order.

Monitoring and Managing Orders

Effective monitoring and management of stop-profit and stop-loss orders are crucial for successful trading. Here are some tips for managing your orders on HTX:

• Regularly check the market conditions to ensure your stop-profit and stop-loss levels are still appropriate.
• Use HTX's mobile app to monitor your trades on the go.
• Set alerts for when your stop-profit or stop-loss levels are reached, so you can take action if necessary.
• Review your trading strategy periodically to adjust your stop-profit and stop-loss percentages based on your performance and market trends.

Common Mistakes to Avoid

When setting stop-profit and stop-loss orders, traders often make common mistakes that can impact their trading performance. Here are some pitfalls to avoid:

• Setting stop-profit and stop-loss levels too tight: This can result in premature closure of trades due to normal market volatility.
• Ignoring market trends: Failing to adjust stop-profit and stop-loss levels in response to changing market conditions can lead to missed opportunities or increased losses.
• Over-reliance on automated orders: While stop-profit and stop-loss orders are useful, they should be part of a broader trading strategy that includes manual intervention when necessary.

Frequently Asked Questions

Q: Can I set multiple stop-profit and stop-loss orders for the same trade on HTX?

A: HTX allows you to set only one stop-profit and one stop-loss order per trade. If you need to adjust these levels, you must modify the existing order.

Q: What happens if the market price gaps through my stop-profit or stop-loss level?

A: If the market price gaps through your set levels, HTX will execute the order at the next available price. This might result in a slightly different execution price than your set stop-profit or stop-loss level.

Q: Can I cancel a stop-profit or stop-loss order after it has been set?

A: Yes, you can cancel a stop-profit or stop-loss order at any time before it is triggered. Navigate to the "Open Orders" section on HTX, find the order, and click on the "Cancel" button.

Q: How does HTX handle partial fills for stop-profit and stop-loss orders?

A: HTX will attempt to fill the entire order at the specified stop-profit or stop-loss price. If only a partial fill is possible, the remaining portion of the order will stay active until it is fully executed or canceled.