In contract trading, due to high market volatility and leverage that can amplify losses, risk management is a core strategy to safeguard funds and maintain stable operations.
Using Stop Loss & Take Profit
Stop Loss
Automatically closes the position when the price reaches a preset level to limit losses.
Example: If you open a long BTC position and the price falls to the stop loss level, the system automatically sells to close the position, preventing further loss.
Take Profit
Automatically closes the position when the price reaches a preset level to lock in profits.
Example: If you open a long BTC position and the price rises to the take profit level, the system automatically sells to close the position, securing profits.
Setting Tips
You can set stop loss/take profit based on a fixed price or percentage relative to the opening price.
For long-term positions, Trailing Stop can be used to follow price movements and lock in more profits.
Purpose
Helps investors manage risk during market volatility, prevent emotional trading, and ensure profits are realized.