First of all, the price of Bitcoin fluctuates greatly, and the investment risk cannot be underestimated. When formulating a stop-profit and stop-loss strategy, investors should determine it based on their own risk tolerance and investment goals. Generally speaking, the standards for stop-profit and stop-loss should be based on the personal situation of investors, rather than blindly following the trend or listening to market rumors.

Secondly, the setting of stop-profit should be based on an accurate judgment of market trends. The Bitcoin market fluctuates frequently, and the price is affected by many factors, so investors need to be vigilant at all times and flexibly adjust the stop-profit point. For example, when the price of Bitcoin shows a clear upward trend, the stop-profit point can be appropriately increased to lock in profits; on the contrary, if the market shows signs of a sharp drop, it is particularly important to stop losses in time to avoid further losses.

In addition, there is a strong market manipulation and information asymmetry in the Bitcoin market, and investors need to take this into account when setting stop-profit and stop-loss. Sometimes, the market may experience short-term sharp fluctuations, causing the stop-loss points to be triggered. Therefore, investors should leave some space when setting the stop-loss points to avoid frequent triggering and increase transaction costs.

In addition, as a global digital currency, Bitcoin is affected by many factors, including policies and regulations, market sentiment, and technological development. Therefore, when setting the stop-loss points, investors should also pay attention to the global macroeconomic situation and political dynamics in order to more comprehensively assess market risks and formulate more reasonable stop-loss strategies.

In general, the Bitcoin investment market is full of opportunities and challenges, and the reasonable setting of stop-loss points is one of the keys to the success of investors. The standard stop-loss strategy should be based on a deep understanding of the market and an accurate assessment of one's own risk tolerance. At the same time, the strategy should be adjusted in time to flexibly respond to market changes. Only in this way can investors move forward steadily in the Bitcoin market and achieve long-term and stable investment returns. I hope this article will help you in formulating your Bitcoin investment strategy. I wish you a smooth investment!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As for the title of this article, most investors cannot answer this question. The editor of Coin Circle thinks that if you want to understand this question, you must first understand what stop-profit and stop-loss are. Stop-profit and stop-loss refer to the user setting the order and the order trigger price. When the latest transaction price of the market reaches the trigger price, the system automatically lowers the limit price according to the user's pre-set order price and quantity. After understanding stop-profit and stop-loss, let's return to the topic. How to set Bitcoin stop-profit and stop-loss more reasonably? The editor of Coin Circle will give you a detailed introduction below.

 How to set Bitcoin stop-profit and stop-loss more reasonably?

Today, I will give you a brief introduction on how to stop-profit and stop-loss in the contract, taking OK Exchange as an example

Stop-profit and stop-loss are a kind of strategic entrustment, which refers to the pre-set entrustment and trigger conditions. When the latest transaction price of the contract reaches the pre-set trigger price, the pre-set entrustment will be sent to the market according to the entrustment price to achieve the effect of stop-profit and stop-loss or chasing up and down.

Next, we will introduce the use cases and specific operations of stop-loss and stop-profit orders through four cases:

Case 1 (Stop loss for closing short positions: when you open a short position, you want to set a reasonable stop loss point to close the short position and control the loss to the minimum range) The user holds a short position with an average opening price of BTC of $9,000. He hopes to stop loss when the contract market price rises to $10,000. He orders to close the short position at a price of $10,010. At this time, you need to enter 10,000 in the trigger price column, enter 10,010 in the order price column, and choose to buy to close the short position.

The logic of stop-loss for short positions is similar to the above, that is, you should choose to buy to close the short position at a price lower than 9,000.

Case 2, (Stop loss for closing long positions): The user holds a long position with an average opening price of BTC of $9,000. When the market price falls to $8,000, he stops loss and orders to close the long position at a price of $7,990.

The logic of stop-loss for long positions is similar to the above, that is, you should choose to sell to close the long position at a price higher than 9,000.

Case 3, (open long on rising): When the market price of BTC breaks through $19,250, the user believes that there may be a large upward trend in the future, so he orders to open long at a price higher than the market price of $19,251.

Case 4, (open short on falling): When the market price of BTC falls below $19,250, the user believes that there may be a large downward trend in the future, so he orders to open short at a price lower than the market price of $19,249.

Case 5, we can also choose to stop profit and stop loss at the market price. Still taking Case 1 as an example, the user holds a short order with an average opening price of BTC of $9,000, and expects to stop loss when the contract market price rises to $10,000, and close the short at the market price. At this time, you need to enter 10,000 in the trigger price column, select the market price in the commission price column, and choose to buy to close the short.

It should be noted that:

When the contract price does not reach the trigger price, the commission will enter the market at the commission price. When the contract price reaches the trigger price, the commission will not enter the market.

If the order is executed, your existing position will be closed or a new position will be opened. If the order fails, your position and margin will still exist.

When the order is executed when the order condition is triggered, if the order price set by the user triggers the limit price rule at this time, the system will use the highest or lowest price of the limit price at this time to place an order.

Before the successful trigger, the position and margin will not be frozen. The stop-profit and stop-loss orders may not be successfully triggered. The order may fail due to price limits, position limits, insufficient margin, the contract is in a non-trading state, system problems, etc. The limit order that is successfully triggered is the same as the ordinary limit order. It may not be executed. The unexecuted limit order will be displayed in the current order.

 Stop-loss and stop-profit operation strategy:

There are three combinations of entry and exit strategies for currency circle transactions: set stop loss and set stop profit, set stop loss without setting stop profit, and set stop profit without setting stop loss. We can choose the corresponding optimal strategy for different market trends.

1. Set stop loss and take profit

Applied to daily currency circle transactions, it can be applied to both volatile and unilateral markets, and is the most stable method for all trading strategies. The advantage is that it can effectively control floating profits and losses within a controllable range, and it is the one with the lowest risk coefficient among all trading strategies; the disadvantage is that it is possible that the price fluctuation range is too narrow, and the market falls before reaching the take profit price, and then the loss is swept out.

2. Set stop loss but not take profit

Generally used in unilateral markets with large price fluctuations. Affected by fundamental factors, the market rises or falls sharply. In this process, setting stop loss can control the risk within a limited range, and at the same time, it can expand the amount of profit to the ideal price for investors before releasing it, but the disadvantage is that investors must have a certain technical grasp of the trend of the market, otherwise when the momentum of the market is gone, they may miss the opportunity to make a profit.

3. Set take profit without setting stop loss

Generally used in volatile markets, the price fluctuation range is small, and irregular fluctuations often sweep away your stop loss and cause losses. Setting take profit without setting stop loss can gain profits within the boundaries of the volatile range. The disadvantage is that we must first determine what the current market trend is before we can choose the best strategy, but this is often the most difficult to determine with technical analysis, so we can only choose the corresponding dominant strategy.

The above is an introduction to how to set a reasonable stop-profit and stop-loss for Bitcoin. Finally, the editor of the currency circle tells investors that in the process of Bitcoin trading, the mentality must be kept good, which is also difficult to do. When it comes to money investment, emotions are difficult to control. For example, if the previous transaction loses money, should the next transaction keep up? This is a problem. In trading, we must treat it with a normal mind, reasonably avoid risks, pay attention to following the trend, and do not trade frequently. You can make an investment calculation for yourself, whether to do long-term or short-term. Frequent trading will make people lose rational judgment and fall into a vicious cycle of trading for trading.
In the digital currency market, Bitcoin has always been a popular investment target that has attracted much attention. For investors, setting up stop-profit and stop-loss reasonably is a crucial strategy, which is directly related to the final result of investment income. So, how can we formulate a Bitcoin stop-profit and stop-loss strategy that meets the standards? This article will analyze it in detail from multiple angles.