Take Profit Mexc
Table of Contents
Are you new to trading and want to learn how to optimize your profits and minimize losses? Look no further! In this article, we’ll discuss how to use trigger orders to take profit and stop loss on Mexc, a popular trading platform.
What are Trigger Orders?
A trigger order, also known as a stop order, is an order type that automatically converts orders into an order based on market conditions. Unlike market or limit orders, trigger orders are not executed immediately. They are only realized when the trigger condition is met.
The advantage of trigger orders is that they can be set to automatically execute only when specific market conditions are met. You can use trigger orders to take profits, set stop losses, or open a position only when the market price reaches your desired level.
How to Take Profit or Stop Loss with Trigger Orders
To set a trigger order on Mexc, follow these simple steps:
- Enter your trigger price, price, and quantity.
- Choose between “latest price,” “fair price,” or “index price” as your trigger price type. If you select the index price, your order will be triggered only when the index price reaches your desired level.
- Set the validity of your trigger order. You can choose between 24 hours, 7 days, or long-term effectiveness.
- Optionally, you can place a trigger order along with limit or market orders. This allows you to set trigger-limit prices that will be executed when the trigger price is reached.
Remember, when setting stop-limit orders, ensure that you have sufficient assets to execute the order. Otherwise, your trigger order may fail to be executed.
Example of Stop Orders
Suppose you have bought a 0.1 BTC position of BTCUSDT futures at 50,000 USDT. You can use trigger orders to take profit and stop loss as follows:
- Set a trigger-limit order at 55,000 USDT to take profit.
- Set a trigger-limit order at 49,000 USDT to stop loss.
When the fair price of BTCUSDT futures reaches 55,000 USDT, the trigger order will automatically execute at the best market price, resulting in a profit of around 500 USDT. Similarly, when the fair price reaches 49,000 USDT, the trigger order will automatically execute to stop your loss at around 100 USDT.
Closing Thoughts
Using trigger orders is a powerful tool to take profits and limit losses, helping you control risks and maximize profits. However, please remember that trading crypto involves significant risk, and you should fully understand the risks involved before investing.
Disclaimer: Trading crypto involves significant risk and can result in the loss of your invested capital. The materials are not related to the provision of advice regarding investment, tax, legal, financial, accounting, consulting, or any other related services and are not recommendations to buy, sell, or hold any asset. MEXC Learn solely provides information, but not financial advice. You should ensure that you fully understand the risk involved before investing.
