What's the best way to set a stop loss for my cryptocurrency trades on Robinhood?

3 answers

• May 10, 2022 · 3 years ago
  One of the best ways to set a stop loss for your cryptocurrency trades on Robinhood is to determine a percentage or price point at which you are willing to exit the trade. This can be based on your risk tolerance and the volatility of the specific cryptocurrency you are trading. By setting a stop loss, you can protect yourself from significant losses if the price of the cryptocurrency drops. It's important to regularly review and adjust your stop loss as the market conditions change.
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• May 10, 2022 · 3 years ago
  Setting a stop loss on Robinhood is quite simple. When placing a trade, you can specify the stop price, which is the price at which you want your stop loss order to be triggered. Once the stop price is reached, Robinhood will automatically execute a market order to sell your cryptocurrency. Keep in mind that stop loss orders are not guaranteed to be executed at the exact stop price, especially during periods of high volatility. It's also important to note that setting a stop loss does not guarantee that you will avoid losses entirely, as slippage can occur.
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• May 10, 2022 · 3 years ago
  If you're looking for a more advanced way to set a stop loss for your cryptocurrency trades on Robinhood, you may consider using a third-party trading platform like BYDFi. BYDFi offers advanced order types, including trailing stop orders, which can automatically adjust the stop price based on the price movements of the cryptocurrency. This can be particularly useful in volatile markets where the price can quickly change. However, it's important to thoroughly research and understand the features and risks associated with using third-party platforms before integrating them with your Robinhood account.
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