Introducing New Features – Take Profit (TP) and Stop Loss (SL)

In the dynamic world of cryptocurrencies, risk management is one of the key skills every investor should master and utilize. In times of high market volatility, where cryptocurrency prices fluctuate up and down, even a small market change can significantly impact the profitability of your investments. For this reason, new features—Take Profit (TP) and Stop Loss (SL)—are now available to our clients starting today.

What is Take Profit (TP) and Stop Loss (SL)?

Take Profit (TP) and Stop Loss (SL) are automated orders that you can use to optimize your trades.

• Take Profit (TP): This is an order to automatically close a position when the market reaches a predefined price level set by the investor as a target, which is higher than the current market value. In other words, if the price of an asset rises to a certain level, the TP order secures the profit by selling the asset.
  
  
• Stop Loss (SL): This order works in the opposite way. It automatically closes a position if the price drops to a predefined level. The goal is to minimize losses in case of an unfavorable market movement. Stop Loss helps protect investors from unnecessarily increasing their losses.
  

Guide: How to use Take Profit (TP) and Stop Loss (SL)?

If you want to learn more about how to use these features and ensure you are using them correctly, take a look at our comprehensive guide. This document will walk you through the entire process of setting up Take Profit and Stop Loss positions and explain all the important parameters related to these features.

Why Are These Features Important and How Can They Help Me?

In the cryptocurrency market, where prices can experience significant fluctuations in a short time, the Take Profit and Stop Loss features can be extremely useful, regardless of whether you are an experienced investor or a complete beginner. These new features allow you to:

• Automate trading strategies: Trading today is no longer just about constantly monitoring the market and manually setting trades. Take Profit and Stop Loss allow you to set price thresholds at which trades will be executed automatically, precisely according to your requirements.
  

• Ensure discipline: Emotions are often the biggest enemy of a successful investor. Take Profit and Stop Loss help you stick to your original strategy, even during periods of high market volatility, preventing impulsive decisions based on emotions.
  

• Secure your profit: When setting the Take Profit feature, you know that when you reach your target price, the profit will be automatically realized, and you don’t need to perform any manual trades. This ensures you won’t miss the opportunity to sell your investment at a profit due to any unforeseen event.
  

• Limit losses during sharp declines: While profit is, of course, important and the goal of every investor, it is equally crucial to protect your capital from significant losses. Stop Loss orders minimize potential losses and safeguard your investments from unfavorable market movements
  

How do the Take Profit (TP) and Stop Loss (SL) features work?

The best way to understand these features is through an example. Let’s imagine you have just purchased 1 Bitcoin for 100,000 Euros.

• Using the Take Profit feature, you can set it so that your Bitcoin is sold when its value rises to 120,000 Euros. This means that if the BTC price reaches this level, your position will be automatically closed, and you will realize your profit.
  

• At the same time, you can set a Stop Loss level, for example, at 80,000 Euros. This means that if the BTC price falls below 80,000 Euros, your Bitcoin will be automatically sold, limiting your loss. So even if you bought Bitcoin at the peak of the cycle and its price kept falling, this feature would limit your loss.
  

Additionally, with these orders, you can set not only the sale of your entire investment but also a partial sale. For instance, if you own 1 BTC, you can easily set it so that when the BTC price reaches 120,000 Euros, you sell only 0.5 BTC, 0.1 BTC, or any other portion of your choosing.

Benefits for Our Clients

The introduction of these features is part of our effort to provide our clients with the best tools for successful investing. The benefits of these new features include:

• Simplified trading: Thanks to automated orders, you don’t have to constantly monitor the market. These orders ensure that your positions are closed according to your goals and preferences.
  

• Effective risk management: With these new features, you can protect your investments and avoid unwanted losses. This allows you to invest more easily and with greater confidence.
  

• Flexibility: The new features enable you to set up both Take Profit and Stop Loss simultaneously, ensuring that your position is closed within a specific price range. This allows you to react flexibly to market movements without emotional decision-making.
  

The Take Profit and Stop Loss features are initially available only for assets in the Fumbi Custom product. You can find them in the Fumbi Custom product under the “Investment Management” section. We are working diligently on developing and expanding these features into other products as well.

If you want to learn more about how to use these features and ensure you are using them correctly, take a look at our comprehensive guide.

*The minimum amount to activate Take Profit or Stop Loss orders is €25.