Stop-Loss Order vs Take-Profit Order

Quick comparison to help you distinguish these two crypto terms.

Stop-Loss Order
beginner
risk

An instruction that automatically sells a cryptocurrency when its price falls to a specified level, designed to limit the maximum loss a trader is willing to accept on a position.

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Take-Profit Order
beginner
strategy

An instruction that automatically closes a position by selling a cryptocurrency when its price rises to a specified target, locking in gains without requiring manual intervention.

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