The cryptocurrency market is experiencing substantial volatility, shaking out investors, hodlers, and traders on both sides of the market. For those that aren’t experienced or have strong hands and emotions, volatility can be frightening or frustrating, leading to losses or outright giving up.
Anyone with the proper skills and time in the market knows how to manage their positions and prepare for unexpected volatility by using various order types to their advantage. Here’s how to get the most out of your trading experience by maximizing your understanding of the available order types on PrimeXBT.
What Is PrimeXBT?
PrimeXBT is an award-winning trading platform offering CFDs on over 50 different assets, all under one roof. Finding a trading platform that provides such an opportunity for portfolio diversification is challenging enough, but finding one that includes sophisticated trading tools is rarer.
PrimeXBT offers a variety of advanced order types in addition to many unique ways to get positioned in the market. There’s a service called Turbo, the Covesting copy trading module, and later this year, Covesting Yield Accounts will arrive on the platform thanks to continued partnership with European fintech dev Covesting.
Users of PrimeXBT can deposit ETH, BTC, or ERC-20 tokens like USDC, USDT, and COV for staking or trading. Margin accounts offer leverage on cryptocurrencies like Bitcoin and Ethereum, stock indices like the Dow Jones and Nasdaq, commodities like gas, oil, gold, and silver, and the most popular forex currency trading pairs.
PrimeXBT Order Types Explained
At PrimeXBT, there are several order types and some more advanced order tweaks that can minimize risk and maximize profit potential.
A market order is placed immediately after clicking submit and is made at whatever the current market price is for the asset trading pair the CFD represents. Market orders are valuable when a trader wants the tightest manual control over entries. Market orders are also ideal for entering on wicks into support and resistance.
While market orders entering immediately might appear as a lack of strategy, traders can better assess the market at the time of entry, making market orders a versatile tool depending on the situation. Market orders also allow traders to better respond to any breaking news that has the potential to move markets.
A limit order sets the “limit” at which the order will trigger at when the price approaches. The limit is the lowest or highest acceptable price for the order, as specified by the trader. Limit orders are typically placed at support or resistance and before price approaches. When the price finally reaches the limit, an order is triggered.
A stop order is similar to a limit order; however, the order isn’t triggered by a limit, and instead, a market order is initiated as the price reaches the level the trader specified in the stop. This strategy is used to enter a short when a certain level is penetrated or a long when resistance is breached.
A stop-loss is a trader’s best friend and worst enemy. Stop-losses themselves, if placed poorly, can lead to getting “stopped out” and losing money when making stop loss levels too tight. Leaving them too loose can leave traders exposed.
Still, the tool is by far the most valuable out of all order types, as it protects capital better than anything else. Risk management and capital protection is the most critical factor in trading, not booking profits. Stop-loss orders prevent volatility from getting the best of you and taking you by surprise.
Stop-losses can also be adjusted to move up or down with the price action, securing profit if they are reached unexpectedly. Rather than watching gains evaporate, stop-loss orders don’t just stop loss, but they can also ensure profits are booked.
Take Profit Orders
Here’s an order type unique to only top-tier platforms that actually want you to make money. Take profit orders act exactly how they sound, and let traders “take profit” when certain levels are reached. This means that traders no longer have to manually exit positions that are in profit or move up stop losses as the only protection.
It also allows traders to extract every possible penny out of any move or trade by taking profit exactly when specified and not after the market has reversed.
OCO stands for one cancels the other and lets traders squeeze even more gains out of their trades. Not for the faint of heart, an OCO order will open a long, for example, and when the target is reached, turn into a short position to ride the market back down, booking double the profits off both directions.
OCO orders allow for the most advanced strategy and planning, but unless you’re a pro, it can be tough to get right.
Get The Most Out Of Trading With PrimeXBT
With the wide variety of order types, PrimeXBT is the one-stop shop for novices and professionals alike. Registration is free, there’s no minimum on margin account deposits, and there are so many more features to take advantage of.