How to set stop loss on Poloniex contract

How to set stop loss on Poloniex contract

Poloniex is a cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and futures trading. Futures trading allows traders to speculate on the future price of a cryptocurrency using leverage. However, futures trading can also be risky, as traders can lose more money than they originally invested.

To help manage risk, traders can use stop loss orders. A stop loss order is an order to sell a cryptocurrency at a specified price if the market price falls below that price. This helps to limit the trader's losses if the market price falls sharply.

To set a stop loss order on Poloniex, follow these steps:

1. Log in to your Poloniex account.
2. Click on the "Futures" tab.
3. Select the cryptocurrency pair that you want to trade.
4. Click on the "Orders" tab.
5. Select the "Stop" order type.
6. Enter the stop price.
7. Enter the amount of cryptocurrency that you want to sell.
8. Click on the "Place Order" button.

Your stop loss order will be placed on the order book. If the market price falls below the stop price, your order will be executed and you will sell your cryptocurrency at the stop price.

Here are some additional tips for using stop loss orders:

• Use a stop loss order to protect your profits. If you have a profitable trade, you can use a stop loss order to lock in your profits.
• Use a stop loss order to limit your losses. If you have a losing trade, you can use a stop loss order to limit your losses.
• Be careful not to set your stop loss order too close to the market price. If you set your stop loss order too close to the market price, your order may be executed prematurely.
• Be aware of the risks of using stop loss orders. Stop loss orders can be a valuable tool for managing risk, but they can also be risky. If the market price moves quickly, your order may be executed at a price that is significantly different from the stop price.