Today we’re happy to share that BTSE now also offers its trailing stop-loss orders on the BTSE spot markets. This feature allows you to set a stop-loss order that follows the price of spot market assets on the BTSE exchange.
What Is A Spot Asset Or Market?
A spot asset simply refers to an actual cryptocurrency itself that you can send to various locations such as your own wallet or trade on an exchange such as BTSE.
If you buy one spot Bitcoin (BTC), that one Bitcoin is yours to trade or transfer off the BTSE exchange to a location of your choice.
Similarly, spot markets on BTSE are the locations where you can buy and sell these spot assets, via the order books and order forms listed. Trailing stop-loss functionality is available for all spot asset trading on the BTSE exchange (BTC, ETH, etc.).
What Is A Spot Trailing Stop-Loss?
A spot trailing stop-loss, also commonly shortened to spot trailing stop, is a stop-loss that follows the price of the asset you are trading. Set your spot trailing stop at a price at which you would like to buy or sell an asset if its price moves by a predetermined set amount. If the spot asset’s price breaches that level, your spot trailing stop enters the order book as a market order, picking up the best available price based on order book liquidity at the time.
Spot trailing stop-loss buy and sell orders are both available.
Bitcoin Spot Trailing Stop-Loss Sell Example
Bitcoin’s current spot price is at $8,000. You buy 1 BTC at that price, but you want to sell that 1 BTC if the price moves down by $500 at any point.
You set a spot trailing stop-loss sell at $500 trail value. Bitcoin’s spot price rises to $9,000, which automatically moves your trailing stop trigger up to $8,500, remaining $500 from Bitcoin’s current market price.
If Bitcoin’s price then drops down below $8,500, your trailing stop triggers, selling your 1 BTC via a market order at the best available order book price.
Bitcoin Spot Trailing Stop-Loss Buy Example
You can also set a spot trailing stop to buy an asset if the price moves a set amount.
Bitcoin’s current spot price is at $8,000. You want to buy 1 BTC if price goes up by $1,000 (possibly indicating a reversal, or whatever your rationale may be). You set a spot trailing stop-loss buy at $1,000 trail value.
If Bitcoin’s price goes down to $7,000, your trailing stop moves down to $8,000.
If Bitcoin’s price then goes up to $8,000 and breaches your trailing stop, a market buy order for 1 BTC enters the order book, picking up the best available price.
Setting A Spot Trailing Stop-Loss Order
To set a spot trailing stop-loss, click the trailing stop-loss order box. This opens a separate order form. Enter the amount of the spot asset you want to trade and the trail amount. The trail amount is the distance from the spot asset’s price to your trailing stop (the point at which you would like to buy or sell an asset).
Using the price trigger box, you also must specify if you want your trailing stop-loss to trigger based on the last price traded in the BTSE spot order book, or on the asset’s BTSE mark price.
BTSE’s mark price is an anti-manipulation fair price. Regarding the spot asset you are trading, BTSE’s mark price takes prices from multiple other exchanges and averages those prices into one, adding in additional safeguards to the mix.
Our aim is to create a platform that offers you the most enjoyable trading experience. If you have questions or suggestions, please don’t hesitate to reach out to us at email@example.com or DM us on Twitter: @BTSEcom.