How to set stop loss on CoinEx contract

Placing stop loss orders on CoinEx contract empowers traders with a crucial risk management tool, enabling them to pre-define maximum potential losses and protect their capital in volatile cryptocurrency markets.

Nov 25, 2024 at 09:29 pm

How to Set Stop Loss on CoinEx Contract

In the fast-paced world of cryptocurrency trading, managing risk is paramount. One effective risk management tool is the stop loss order, which allows traders to pre-define the maximum loss they are willing to incur on a particular trade. This article will provide a comprehensive guide on how to set stop loss on CoinEx contract, empowering traders to protect their capital and enhance their trading strategies.

Prerequisites

Before setting stop loss on CoinEx contract, ensure you have:

• A CoinEx account with adequate funds.
• Familiarized yourself with the CoinEx contract platform and the specific contract you intend to trade.
• Selected the appropriate leverage ratio that aligns with your risk appetite and trading strategy.

Step 1: Access the Trading Panel

• Log in to your CoinEx account and navigate to the Contract Trading page.
• Select the specific contract you wish to trade (e.g., BTC/USDT Perpetual).

Step 2: Place a Stop Loss Order

• In the trading panel, you will find the order placement section.
• Select the "Stop Loss" tab and input the parameters of your stop loss order.
• Enter the desired stop loss price, which represents the price level at which the order will be triggered.
• Determine the stop loss trigger type, which can be "Mark Price" or "Last Price."
• Specify the order type, typically "Market" or "Limit."
• Set the order quantity, indicating the amount of the contract you wish to sell or buy when the stop loss is triggered.

Step 3: Adjust Advanced Parameters

• Advanced parameters provide additional flexibility in managing your stop loss order.
• Reduce Only: Restrict the stop loss order from opening new positions, ensuring that it only closes existing ones.
• Time in Force: Set the duration for which the stop loss order will remain active in the market. Options include "Good Till Canceled" (GTC), "Immediate or Cancel" (IOC), or "Fill or Kill" (FOK).
• Post Only: Prevents the stop loss order from matching with any existing orders in the market, ensuring that it will only be executed when the specified price level is reached.

Step 4: Review and Submit

• Carefully review all parameters of your stop loss order to ensure they align with your trading strategy and risk appetite.
• Once satisfied, click the "Place Order" button to submit your stop loss order.
• Your order will appear in the "Open Orders" section of the trading panel.

Step 5: Monitor and Manage

• Continuously monitor the performance of your stop loss order and the underlying contract.
• Adjust the stop loss price as market conditions change to ensure effective risk management.
• If the stop loss is triggered, the order will be executed to close your position and limit your losses.

Additional Considerations

• Trigger Price: The stop loss price should be set below (for long positions) or above (for short positions) the entry price, providing a buffer for price fluctuations.
• Order Type: Market stop loss orders are executed immediately at the market price, while limit stop loss orders have a predetermined price limit.
• Time in Force: GTC orders remain active until canceled or filled, while IOC and FOK orders must be executed immediately or not at all.
• Advanced Parameters: Reduce Only and Post Only settings provide additional control over the order's behavior.