Take Profit/Stop Loss

Bitfunded uses "Take Profit" and "Stop Loss" mechanisms to automatically close positions opened by users. These mechanisms are explained below:

Take Profit (TP): This feature allows you to set a target price at which your position will automatically close, securing your profits. Once the market price reaches this target, the trade is closed, and the profits are realized. This is particularly useful for locking in profits without having to monitor the market constantly.

Stop Loss (SL): This feature helps you limit your potential losses by setting a price at which your position will automatically close. If the market moves against your position and reaches the stop loss price, the trade will close, minimizing your losses. This is crucial for managing risk and protecting your capital.

Adjusting Stop Loss & Take Profit

To set these mechanisms, navigate to the "Trade" screen when you open a position. Activate the TP/SL button. You will typically find options to enter prices for both "Take Profit" and "Stop loss" either during the initial setup of the trade or as modifications to an existing position. These settings are crucial for effective risk management in trading strategies.