⛔Stop Loss Orders
Protect yourself from downside risk with TokenSight's Stop Loss orders
What is a Stop Loss Order?
A stop loss order is a specific type of trade order that enables you to sell your assets for native coins, USDC, or USDT if the price of a specific asset falls to a certain level.
For example, let's say you've just bought the token PEPE. Your price target is much higher than what you paid, but your invalidation point is 10% below the current price. You don't want to hold the token anymore if the price drops by 10%, and you want to protect yourself from further downside. You can set a stop loss order with a target price 10% lower than the current price.
Thus, stop loss orders provide an easy and efficient way to protect against downside risk.
How do Stop Loss Orders work?
Stop loss orders are triggered when the price of the asset falls to the target price of the trade order. The stop loss order is deactivated once it is executed.
How to create a Stop Loss Order
You can create a Stop Loss Order easily:
Go to the Trade page.
Select the network.
Select the token you want to sell.
Select the wallet that holds the desired token.
Select the 'Sell' action.
Select 'Limit (SL)' (stop loss orders are a type of limit order).
Enter the target price (the target price must be below the current asset price).
Enter the amount you want to sell.
Select the expiration time (by default, it is set to 1 day).
Optionally modify the trade order settings, such as slippage, validator tip, etc.
Click on the Sell button.
Confirm the order.
Notes
You need to have a minimum amount in the native currency (e.g., ETH for Ethereum) to pay for the gas of the transaction in the selected wallet.
Double-check the trading settings. Here, you can set the slippage, validator tip, and other settings. Read more on the Trade Order Settings page.
Make sure you set the right Expiration time. 1 day might be too low for certain trades.
A fee is charged for every trade. Read more on the Fees page.
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