How are you all friends I hope my friends will be fine and busy with the world. Crypto Academy Season 3 is the eighth week and I am very happy. Doing homework like this and I hope I can do it well.

Explain trade terms.

Buy stop.

Here a stop loss order is placed at a stop loss price higher than the current market value. Investors often use stop-loss orders to limit losses or save returns on stocks. Which they need to sell a little. A sell stop order that occurs is placed at a stop loss price below the current market value.

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When the price reaches the default, the buy limit will guide the trader to buy the security. Once the price reaches this point, the buy stops. The loss will become a limit or market order, which can be moved to the next availability price. This type of stop loss order can be applied to stocks, derivatives, currencies or various other instruments in circulation. After reaching a certain height, the price of the stock will go up. When you place a stop loss order, once the price of the security reaches a certain stop loss price, the value of the asset should go up. Keep in mind that this is a strategy to take advantage of rising stock prices through bookings. Buy stop orders that can be used to protect against the unlimited losses caused by short positions, which is good. Here you can consider the trend that TRN's stock price is about to break the trading range of $ 12 to $ 13. For example, when a trader bets that the price of TRN will go up at the top of this range, he will place a buy order. Stop loss is at 12.20 USD. Once the stock reaches that price, the order will be converted into a market order, and the trading system will buy the stock at the next available price. An order of the same type is used to close a position. For example, the trader has a very short position on TRN, which means that he is betting that his price will fall in the future. To avoid the risk of the stock moving in the opposite direction, ie increasing prices, traders place a buy order with a stop loss. If the price of TRN increases, the buying position becomes better. Therefore, even if the stock moves in the opposite direction, the trader can compensate for the loss.

Stop the damage

Friends will talk here about how to prevent damage. When stop loss is used to sell any asset traded in the market at the current price. For example, although it seems that we are losing our position first, we can lose even more if the price breaks through strong sales. If the price does not break, our order will not be processed.

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Buy limit.

The buying limit is where traders buy and sell shares at a fixed price or better. The purchase limit order can be executed only at the limit price or less while the sales limit order can be executed only at the limit price or more and the purchase limit is only Time can be put into action. When the stock market price reaches the price. If the value of an asset is less than its current value, it is called a purchase. It will be called a purchase order. The purpose of the trader who places the order is to reduce the value of the assets first, and to increase the value rapidly after placing the order. Limit buying orders provide investors and traders with the right way to enter positions, which is important.

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Here I give you an example. When the stock transaction price is 5.20 USD, you place a limit order at 5.15 USD. If the price drops to 15 5.15, your order will be completed automatically. The order will not be completed by then. This will not happen unless the price is $ 5.15 or less.

Sales Limit

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Here we will read the sales limit. The sales limit will be executed on the order limit price or more. In general, limit orders allow you to specify a price. Stop Loss Order includes specific parameters used to trigger a trade. Once the share price reaches the stop price, it will be executed at the next available market price. If the value of any asset is much higher than the current value and a sale transaction is required, then the terms under which the sale order is placed. This is called cell stop loss. Here traders think that prices go up first and then come down. You think the resistance level is very strong now.

When the volume is not very high, the trend is not strong enough and traders think that the price will go up and then come down. In this case, traders can assume that the price will go down as the price goes up.

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Trawling stop loss.

Here's a column about Star Plus.Trailing stop loss is also called trailing stop loss. There is a market order that sets the stop loss to a certain percentage below the market value of the asset rather than a single value. Therefore, the stop loss will lag far behind the shares as the share price changes. The trailing stop order feature allows traders to make a profit and avoid losses. The purpose here is to increase the profit of the trader. When the market price goes up and down, traders use a good mind there. Will place pre-analyzed and fixed orders. If this type of order does not move in the direction expected by the trader, the loss is limited and the profit is safe. If the price changes based on the needs of the trader, it changes based on the desired percentage. In this case, the giver and the taker remain open. If the trader makes a profit, he will close the profit provided. Conversely, if the price goes down, when the price moves to a certain percentage, past stop loss orders will stop taking and giving at the current price.

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Call margin.

When the call margin requires value or additional funds to move the margin account to the minimum maintenance margin. For example, if the trader does not raise funds, the broker will force the trader to sell the asset, meeting the margin call requirement from the market price. When certain conditions are met, it is a call from the broker to the trader. Imagine a trader changing all his money and making a loss. He accepted the broker's advice to keep the traders in position and avoid further losses.

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2. Demonstrate your understanding of risk management in trading.

What is risk management?

Risk means the possibility of harm to your activities. Events that go against your expectations. Receipt is a part of currency trading. Giving and receiving can have more consequences than you think, which can be detrimental to you. For example, a 400 risk of a short position means only a 40% chance that the value of the bitcoin will increase, resulting in your loss. And you will become weak.Traders should take a good step to avoid the risks and losses that they will face in trade and this is often one of the foundations of trade. If the trader does not stick to his set rules, we cannot say that he did a good business. When you are trading. You also have to manage the losses for the success of the trade.

Risk management strategies are divided into 3 types.
S position sizing,
is risk / reward ratio,
Prevent loss and take advantage.

Position sizing / portfolio management.

The size of the position determines what percentage of the cryptocurrency is ready to buy coins or tokens. Corrupt trading is a great source of profit. The tremendous profits in cryptocurrency make traders take 40, 60 or maybe 90 take position of their trading capital and this is often a disruptive move that puts them at risk. Puts The best option is to take advantage of different possibilities or investments. Here you can use this method to understand position sizing. And you can benefit from it.

Money Competitive Risk Amount
This point considers two different quantities. The main purpose of which involves money because you are ready and can take a position in each contract. The trader should stop at this amount.

Which can be described below.

A = ((Stack Size * Risk Per Trade) / (Entry Price - Stop Loss)) * Entry Price

For example, getting ETH with USDT with a target of $ 13,000. The parameters will be:

Stack size: 5,000.
Risk per trade: 2%
Admission price: 11,500
Stop Loss: ، 10,500.
The amount we will enter will be:

Stop the loss and take advantage.

The trader should adopt two strategies. One of the two main strategies that wise traders use in trading is stop loss and profit. When you trade, if the market goes beyond the trader's thinking, if there is a decrease in the value of the assets, the stop loss is saved from further losses and our trade is closed. On the contrary, it is good if the business goes ahead as we think, and it is an order that is activated in the event of an increase in the value of the assets. It is not at all the case here that the trader only makes a profit. No, the trader also suffers a loss. If he does not take good action, he may be harmed.

Result

Today's lesson was very instructive for us. And we've learned a lot from that. You can use the word trailing stop and make a profit. Trade risks to manage the rate changes yourself as well as stop, sell stop, buy limits and margin calls Fortunately with corrupt terminals like Super Order you can set your own trailing stop losses and make a profit.

Regard:

@ansardillewali