Coinbase, Exchanges

Does Coinbase Pro Have Trailing Stop Loss?

As digital assets continue to grow in popularity, exchanges are offering more features to meet customer demand. Coinbase Pro, one of the most popular cryptocurrency exchanges, recently added trailing stop loss to its list of available order types.

This article will explore what a trailing stop loss is, how it works on Coinbase Pro, and whether or not it is a good addition to the exchange.

What is a trailing stop loss?

A trailing stop loss is an order type that allows traders to set a stop loss that trailed behind the current market price by a certain percentage or dollar amount. For example, if you buy Bitcoin at $10,000 and set a trailing stop loss of 5%, your stop loss will automatically adjust to $9,500 if the price of Bitcoin drops to $9,500.

If the price of Bitcoin then rallies to $11,000, your stop loss will adjust to $10,500. The beauty of this order type is that it allows traders to lock in profits as the market moves in their favor while still protecting against downside risk.

How does Coinbase Pro implement trailing stop losses?

Coinbase Pro offers two methods for placing trailing stop orders: percent trail and dollar trail. With percent trail, traders simply enter the percentage they would like their stop loss to trail behind the current market price. For example, if you set a 5% percent trail on Bitcoin with a current market price of $10,000, your stop loss will adjust automatically to $9,500 if the price drops to that level.

NOTE: WARNING: Coinbase Pro does not currently have a trailing stop loss feature. Using this feature may increase your risk of loss if the market moves against you. Please use caution and do your own research before using any trading features on Coinbase Pro.

With dollar trail, traders enter the dollar amount they would like their stop loss to trail behind the current market price. So, using the same example as above, if you set a $500 dollar trail on Bitcoin with a current market price of $10,000, your stop loss will adjust automatically to $9,500 if the price drops to that level.

Coinbase Pro also offers some additional features for its trailing stop orders that are worth mentioning. First, traders can choose whether they would like their order to execute immediately or remain pending until the market price reaches their desired level.

Second, traders can choose whether they would like their order to cancel other open orders or remain active alongside other open orders. This can be helpful for those who want to limit their downside risk but still have other trades working in the market.

Should you use Coinbase Pro’s trailing stop losses?

Whether or not you should use Coinbase Pro’s trailing stop losses depends on your trading strategy and risk tolerance. If you’re looking for a way to lock in profits as the market moves in your favor while still protecting against downside risk, then trailingstop losses may be a good addition to your arsenal.

However, if you’re not comfortable with having yourstoplossesadjust automatically or if you’re looking for more flexibility in your trading strategy, then another order type may be more suitable for you.

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