Trailing stop loss existence

Yes—most trading platforms support a **trailing stop‑loss** order. ### What it is A trailing stop‑loss is a dynamic stop order that moves in the direction of the trade (up for longs, down for shorts) as the market price moves in your favor. The distance between the market price and the stop level is set as a fixed amount or percentage. ### How it works (long position example) 1. **Set the trail** – e.g., 5 % or $200 below the current price. 2. **If the price rises**, the stop price automatically rises, staying 5 % (or $200) behind the highest price reached. 3. **If the price falls**, the stop price stays where it was. When the market price touches the stop, the order becomes a market (or limit) order and your position is closed, locking in the profit you’ve accumulated. ### Benefits - **Protects gains** without having to monitor the market constantly. - **Limits downside** while allowing upside participation. - Works on many assets, including cryptocurrencies, stocks, futures, etc. ### Things to watch - **Liquidity**: In thin markets the execution price may slip. - **Trailing amount**: Too tight → frequent stops; too wide → larger drawdown. - **Order type**: Some platforms use a market order on trigger (may incur slippage), others allow a limit order. So, a trailing stop‑loss definitely exists and is a common risk‑management tool for crypto traders.

**Stop Market vs. Stop Limit** | Feature | Stop Market | Stop Limit | |---------|-------------|------------| | **How it works** | When the stop price is reached, a **market order** is sent immediately. It fills at the best available price (which can be better or worse than the stop price). | When the stop price is reached, a **limit order** is placed. The order will only fill at your specified limit price (or better). | | **Pros** | • Guarantees execution (you’ll get out of the position).<br>• Simple to set. | • Gives price control – you won’t be filled far away from the stop price.<br>• Useful in thin‑liquid markets where slippage can be large. | | **Cons** | • Can suffer **slippage** in fast‑moving markets; you may exit at a much worse price. | • May **not fill** if the market gaps past your limit price, leaving you exposed. | | **Typical use** | Tight risk‑management where exiting for sure is more important than the exact price (e.g., protecting a large position). | When you want to limit the worst‑case exit price, especially on assets with lower liquidity. | **Take Profit (Take) Market vs. Take Profit (Take) Limit** | Feature | Take Profit Market | Take Profit Limit | |---------|--------------------|-------------------| | **How it works** | Once the trigger price is hit, a **market order** sells (or buys) to lock in profit. Execution is immediate, but the fill price may differ from the trigger. | Once the trigger price is hit, a **limit order** is placed at your chosen profit price. The order fills only at that price (or better). | | **Pros** | • Guarantees you capture profit (you’ll exit the trade).<br>• Simple and fast. | • Lets you lock in a precise profit target, avoiding “over‑selling” at a lower price. | | **Cons** | • May execute at a worse price if the market moves quickly (slippage). | • Risk of **non‑execution** if price never reaches your limit after the trigger, leaving the position open. | | **Typical use** | When you want to ensure you take profit regardless of a small price swing (e.g., after a strong rally). | When you have a specific price target and want to avoid selling too low, especially in less volatile markets. | **Key Takeaways** - **Market orders** = “sell/buy now at the best price”. Use when certainty of execution matters more than exact price. - **Limit orders** = “sell/buy only at this price (or better)”. Use when price precision matters more than guaranteed execution. - Pairing a **stop** with a **market** gives you a safety net; pairing it with a **limit** gives you price control but carries fill risk. - The same logic applies to **take‑profit** orders: market for guaranteed exit, limit for exact profit targets.