To set take-profit and stop-loss is to minimize your potential risk and guarantee your profits.
In the cryptocurrency market, a take-profit order (T/P) is a type of preset order that specifies the price at which to close out an open position for an expected profit. If the market price does not reach the preset price, the take-profit order will not be executed. If the market price reaches the preset price, the open position will be automatically closed.
A stop-loss order(S/L) is also a preset order that will be executed when the market price reaches the stop-loss price. Then the opened position will be closed for a loss.
Login->Trading->Make a market order->Take-profit / Stop-loss setting
Who Should Use a Take-profit Order & Stop-loss Order?
These two orders are beneficial for short-term traders hoping to gain immediate profits from a quick rise or fall in the market. Most traders use take-profit orders in conjunction with stop-loss orders.
The good side of utilizing a take-profit order or a stop-loss order is that the trader does not have to worry about manually executing a trade or make second-guessing themselves. For take-profit orders, it allows you to take advantage of a quick change in the market rather than potentially missing the chance to get a profit. For stop-loss orders, it helps control risk that prevents you from a further loss if you encounter a volatile market change, especially when the market never rises or falls to the level you preset. Traders can freely change the preset price or cancel the orders before they are executed.
As known, the risk is inseparable from return. These two orders are not good for long-term traders, who want to make a larger profit. Long-term trend traders might get frustrated when they found a good trend but quit the market too early. For day traders who want to maximize their profits, they could try 100x leverage trading.