Stop-Loss Order
Automatically sell when price drops to your set level. Limits your maximum loss on a trade.
Example:
If you buy BTC at $50,000 and set a stop-loss at $48,000, your position will automatically close if the price drops to $48,000, limiting your loss to 4%.
Take-Profit Order
Automatically sell when price reaches your target. Locks in profits without constant monitoring.
Example:
If you buy BTC at $50,000 and set a take-profit at $55,000, your position will automatically close when price reaches $55,000, securing your 10% gain.
Risk-Reward Calculator
Calculate your potential profit and loss for any trade setup
Price Ladder
Potential Loss
-$40.00
-4.0%
Potential Profit
+$100.00
+10.0%
Risk/Reward
1:2.50
Good
Understanding Risk-Reward Ratio
The risk-reward ratio compares your potential loss to your potential profit. A 1:3 ratio means you risk $1 to potentially make $3. Professional traders typically aim for at least 1:2 ratio.
Risking more than you can gain. Need >67% win rate to profit.
Equal risk and reward. Need >50% win rate to profit.
Risk 1 to gain 3. Only need 25% win rate to profit.
Common Mistakes to Avoid
Stop-Loss Too Tight
Setting stops too close gets you stopped out by normal volatility. Give your trade room to breathe.
Moving Your Stop-Loss
Never move your stop-loss further away to avoid taking a loss. This is how small losses become big ones.
No Take-Profit Set
Without a take-profit, greed can turn winning trades into losers. Always have an exit plan.
Ignoring Risk-Reward
Taking trades with poor risk-reward ratios leads to long-term losses even with good win rates.
Key Takeaways
Always use stop-losses - they're your insurance against catastrophic losses.
Aim for at least 1:2 risk-reward ratio on your trades.
Never move your stop-loss further away from entry - only trail it in your favor.
Set both stop-loss and take-profit before entering any trade.
Best Exchanges for SL/TP Orders
These exchanges offer advanced stop-loss and take-profit features for better risk management.
Ready to Trade with Confidence?
Apply proper risk management on the world's top exchanges with exclusive fee discounts.