First things first. Congratulations that you’re reading this. It means you’re a more responsible investor than others - some of our team included.
Stop-Loss is a way to limit your downside exposure when trading on exchanges. With stop-loss, you can specify how low the price can go before you take losses and move on.
Here is a guide on how you can set your stop-loss on the FMFW exchange.
If you already have funds deposited in your account, head to your wallet and transfer funds from your wallet to the spot account.
Go to the market that you want to trade; for this example, we bought roughly 180 USD when Monero was trading at around $250 with our BCH at market price. As we don't want to be losing too much money on XMR, we place a stop-loss order.
To use stop-loss, go to the market you want to trade and place a sell order.
Then, by checking the Stop box in the order tab, you can define your stop-loss price. This is the price at which your order will automatically be executed. In this example, the stop-loss will hit when XMR reaches 220 USDT.
3. You can use either a market order with a stop or limit order, depending on what you’re trying to achieve. You can learn more about different limit order types here.
When using limit orders, please note that due to slippage, limit orders with a stop might not be executed at the desired price.
4. Once you’ve set your stop-loss at a reasonable price point, you can sit back and relax. When using a market order your order will automatically be executed at the price you’ve defined.
5. Until the order is executed it will be reflected in your active orders, and you can cancel it at any time if you change your mind.
Margin Trading with Stop-Loss
To start opening a margin position, got to Margin, search for the market you want to trade and add margin. In our example, we’re opening a long position on EOS/USDT market
Transfer funds from Spot Account to Margin. (Click the +Margin button from the Account tab, found above the Actions column)
To open your long position head to the market order tab and place your order. Once executed you can move on to setting your stop-loss, to manage the potential downside.
In order to place a stop price, go to the Sell tab, pick market order and check the Stop box. Define your stop price (4 USDT in this example) and confirm by clicking Sell Stop.
Now you’ve defined your stop price and if EOS goes to $4 your order will automatically be executed, without you having to do anything.
The order is reflected in your open orders until the Stop price is reached and if you want to cancel it, you can always do so.
If you made it this far, we have to repeat, well done for being a responsible trader. And we hope that all your long positions work out. 🙌
If you have questions regarding stop-loss or trading on our exchange in general, feel free to reach out to us in our support center, via the chat widget. To discuss your trading with others, join our Telegram group.