Poloniex created a tool called "stop-limit", which serves to protect the trader's investment, due to the risks. Do not confuse the stop-limit serves both to buy, as paravenda. Simply put, I'll explain in a practical way how it works, I will use the Lisk currency as an example:
In the case of purchase:
- I'm watching the market and the currency has just stabilize the 65k (satoshi) and the analysis of charts, I believe there will be a drop, but if there is a pump, I do not want to lose the opportunity to buy it before you go up a lot.
How to complete:
Stop: when the currency reaches that value.
Limit: add purchase orders to that stipulated amount.
Amount: amount of currency you want to buy.
What will happen here: so the highest value in the Sell order is above the value of Stop, which is 66k, the Poloniex will create for you one or more regular limit orders, which reach up to 66.5k, remembering that he will always register of smaller orders for larger, ie case go immediately and the largest order is for 62k, it will log a little above that, while respecting the limit that is "limit".
In the case of sale:
- I bought Lisk (LSK) to 65k and I'm watching. It seems that there will be a dump and it will fall to 62k and I want to protect my assets, selling it so drop to 64k, so I do not have a loss and can buy back the 62k. What to do?
How to complete:
Stop: when the currency reaches that value.
Limit: add sales orders to that stipulated amount.
Amount: amount of currency you want to sell.
What will happen here: so the lowest value at the Buy order is below the value of Stop, which is 65k, the Poloniex will create for you one or more regular limit orders, ranging from the highest to the lower value is 64k, or intelligently, the exchange will create orders reaching the highest values to reach the maximum amount stipulated in Limit, if not sold all their amount on orders above that. Example: quickly it can create three or more orders in the values of 64.9, 64.8, 64.7, 64.6 case reaches the 65k.
Attention (for both cases): always beware of decimal places, the leading zeros, always watch out before the value is correct, a tip is always copy the values of BUY or SELL boxes.
Why have a limit or stop for the highest price to sell for?
A minimum sell price helps when it goes down.
But you can let it go up forever.
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To fix your profit
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Thanks, this helped
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i know this post is old, but is there a way to create a stop loss, and a take profit point? If I set a sell for profit target I know longer have the tokens available to set in a stop loss
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