Stop-loss: capping a loss before it grows
A stop-loss is a price where you sell to stop a losing trade getting worse. Here is how to use one, and what it can and cannot protect you from.
Updated Oct 31, 2026
Basahin sa FilipinoWhat is a stop-loss?
A stop-loss is a price you set in advance: if the coin falls to it, you sell. It turns "how much could I lose?" into a number you choose.
Buy 1 coin at $100. Stop-loss at $90. The price falls to $90 → sold. Loss: about $10 (−10%), not more.
Where should I put it?
Far enough that a normal wobble does not trigger it, close enough that the loss stays small. Volatile coins need more room.
| Stop below your price | What usually happens |
|---|---|
| 2–3% | Often hit by normal ups and downs, then the price recovers |
| about 10% | A common choice for big coins like Bitcoin |
| 20% or more | Room for very volatile coins, but a bigger loss if hit |
Some traders put it just below a recent low on the chart, where the price bounced before.
What happens in a fast crash?
A stop-loss sells at the next price available. If the price jumps straight past your stop, you sell lower than you planned.
- 1You bought at $100, with a stop at $90.
- 2Overnight, bad news: the price drops from $95 straight to $80.
- 3Your stop sells at about $80, not $90.
- 4You lose about $20 instead of $10.
A stop-loss limits most losses, but it is not a guarantee.
What is a trailing stop?
A trailing stop moves up as the price rises, always staying a set distance below the highest price, so it protects your gains too.
| Price | Highest so far | Trailing stop (10% below) |
|---|---|---|
| $100 (you buy) | $100 | $90 |
| $150 | $150 | $135 |
| $140 | $150 | $135 (it never moves down) |
| $135 | $150 | Sold at $135: +$35 kept |
Can I set a stop-loss on Tradeground?
Not as an automatic order yet. For now, decide your stop before you buy and sell yourself if it is reached. With Pro, set a price alert at your stop so Tradeground tells you when the price gets there.