We provide a number of trading tools that can be used as part of risk management strategies when trading in volatile markets such as Bitcoin and other cryptocurrencies.
You can use the ‘Close at Profit’ order to 'lock in' your potential profits - by automatically closing your trade at a predefined rate.
You can use the ‘Close at Loss’ order to minimise and prevent further losses - by automatically closing your trade at a predefined rate.
Another option is to use the ‘Trailing Stop’ order which is designed to protect profits by enabling a position to remain open as long as the price is moving in your favour, however it closes the trade as soon as the price changes direction by a predefined number of pips.
Note that these stop orders do not guarantee your position will close at the exact price level you have specified. If the price suddenly gaps or slips down or up, at a price beyond your stop level, your position may be closed at the next available price, which can be a different price than the one you have set. This is referred to as 'Slippage'.
If you wish to ensure that your trade closes at the exact rate you have set without the risk of slippage, you can place a ‘Guaranteed Stop’. This special order is available for an additional fee paid via the Bid/Ask spread.
To learn more about how you can use Plus500’s risk management tools, click here.
