How does Coinbase Pro handle stop loss orders?

3 answers

• Dec 25, 2021 · 3 years ago
  Coinbase Pro provides a feature called stop loss orders, which allows users to set a predetermined price at which their assets will be sold automatically. When the market price reaches or falls below the specified stop price, the stop loss order is triggered and executed. This feature helps traders limit potential losses and protect their investments. It's important to note that stop loss orders on Coinbase Pro are not guaranteed to execute at the exact stop price due to market volatility and liquidity. However, Coinbase Pro strives to execute stop loss orders as close to the stop price as possible.
  606303
• Dec 25, 2021 · 3 years ago
  When using stop loss orders on Coinbase Pro, it's crucial to set the stop price carefully. Setting it too close to the current market price may result in frequent triggering and unnecessary selling. On the other hand, setting it too far away may not provide adequate protection. Traders should consider their risk tolerance and market conditions when determining the appropriate stop price for their orders.
  407136
• Dec 25, 2021 · 3 years ago
  BYDFi, another popular cryptocurrency exchange, also offers stop loss order functionality. Similar to Coinbase Pro, BYDFi allows users to set a stop price at which their assets will be automatically sold. This feature is useful for managing risk and protecting investments. However, it's important to understand that stop loss orders are not foolproof and may not always execute at the desired price due to market conditions. Traders should always monitor their positions and adjust their stop loss orders accordingly.
  518130