Hard Stop vs Mental Stop

Quick comparison to help you distinguish these two crypto terms.

Hard Stop
intermediate
risk

A firm, pre-placed stop-loss order entered into the exchange immediately upon trade entry that automatically closes a position at a specific price without requiring any manual intervention.

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Mental Stop
intermediate
psychology

An intended exit price held only in a trader's mind without a corresponding exchange order placed, relying entirely on the trader's willingness to act manually when that price level is reached.

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