Setting stop loss and take profit in Kraken contracts

Setting Stop Loss and Take Profit in Kraken Contracts

Kraken is a popular cryptocurrency exchange that offers a variety of trading tools, including contracts. Contracts are a type of derivative that allows traders to speculate on the future price of an asset without having to own the underlying asset.

One of the most important tools for managing risk in contracts trading is stop loss and take profit orders. Stop loss orders are designed to limit losses by automatically closing a position when the price of the asset reaches a certain level. Take profit orders are designed to lock in profits by automatically closing a position when the price of the asset reaches a certain level.

Setting stop loss and take profit orders can help to protect your profits and limit your losses. In this article, we will show you how to set stop loss and take profit orders in Kraken contracts.

Step 1: Create a Kraken Account

If you don't already have a Kraken account, you can create one by visiting the Kraken website. Once you have created an account, you will need to fund it with cryptocurrency.

Step 2: Navigate to the Contracts Trading Platform

Once you have funded your account, you can navigate to the contracts trading platform by clicking on the "Contracts" tab in the top menu.

Step 3: Select a Contract

On the contracts trading platform, you will need to select a contract to trade. Kraken offers a variety of contracts, including futures and perpetual swaps.

Step 4: Place a Stop Loss Order

Once you have selected a contract, you can place a stop loss order by clicking on the "Stop Loss" button in the order form. In the stop loss order form, you will need to specify the price at which you want the order to be triggered and the amount of the order.

Step 5: Place a Take Profit Order

You can place a take profit order by clicking on the "Take Profit" button in the order form. In the take profit order form, you will need to specify the price at which you want the order to be triggered and the amount of the order.

Step 6: Monitor Your Orders

Once you have placed your stop loss and take profit orders, you can monitor them by clicking on the "Orders" tab in the top menu. The Orders tab will show you a list of all of your open orders.

Step 7: Close Your Orders

You can close your stop loss and take profit orders by clicking on the "Close" button next to the order. You can also close your orders by placing a new order in the opposite direction.

Tips for Setting Stop Loss and Take Profit Orders

Here are a few tips for setting stop loss and take profit orders:

• Use a stop loss order to protect your profits. A stop loss order will automatically close your position when the price of the asset reaches a certain level, which can help to prevent you from losing more money than you intended.
• Use a take profit order to lock in profits. A take profit order will automatically close your position when the price of the asset reaches a certain level, which can help you to secure your profits.
• Be realistic with your stop loss and take profit levels. Don't set your stop loss order too close to the current price of the asset, as this could cause your order to be triggered prematurely. Similarly, don't set your take profit order too far away from the current price of the asset, as this could reduce your profits.
• Monitor your orders regularly. Once you have placed your stop loss and take profit orders, you should monitor them regularly to make sure that they are still active. You should also adjust your orders if the price of the asset moves significantly.