How to Use Trailing Orders

Content of this article:

What is a Trailing Order?

How to Use Trailing Orders

What is a Trailing Order?

A Trailing Order is a strategy that places your pre-set order into the market when there is a significant price rebound in market conditions. When the latest market price reaches (1 ± Rebound Percentage) of the highest (or lowest) market price you set, the order condition is triggered, and your pre-set order is placed on the market at the current market price.

Example:

For the BTC/USDT trading pair, suppose the current price of BTC is 5000 USDT. You expect that if the market drops to 4000 USDT and then rebounds by 5%, a larger upward trend might follow. In this case, you can pre-set a trailing order with a rebound percentage of 5% and an activation price of 4000 USDT. If the market falls to 4000 USDT and then rebounds by 5% to 4200 USDT, the system will trigger your pre-set trailing order and place it in the market as a market order to buy the corresponding amount of BTC.

Conditions:

• For buy orders, the activation price must be greater than or equal to the lowest price, and the rebound percentage must be greater than or equal to the trailing percentage.
• For sell orders, the activation price must be less than or equal to the highest price, and the rebound percentage must be greater than or equal to the trailing percentage.
• If the available quantity in your account is less than the order quantity when the trailing order is triggered, the system will use the available quantity. If this available quantity is less than the minimum trading quantity required by the market, the order will fail.

How to Use Trailing Orders?

On the trading page, set the leverage for long or short positions — Click Open Position — Trailing Order.

Select the percentage — Enter the rebound percentage — Set the quantity — Choose Buy/Open Long or Sell/Open Short.

Note:

There is an option to set the activation price. If you specify an activation price, the trailing order will only trigger when the market price reaches or exceeds this activation price. If no activation price is set, the order will be activated immediately after submission.

Example:

For the BTC/USDT trading pair, suppose the current price of BTC is 70,000 USDT. You expect that if the market drops to 60,000 USDT and then rebounds by 5%, a larger upward trend might follow. In this case, you can pre-set a trailing order with a rebound percentage of 5% and an activation price of 60,000 USDT. If the market falls to 60,000 USDT and then rebounds by 5% to 63,000 USDT, the system will trigger your trailing order and place a market order to open a long position according to your settings.

Risk Warning:

When using trailing orders on the Monochrome Exchange, this feature can help users follow price trends automatically and lock in potential profits. However, the cryptocurrency market is highly volatile. If the trailing percentage is not set appropriately, it may result in missed opportunities to lock in profits or frequent triggers of liquidation. Monochrome advises users to set a reasonable trailing percentage based on market conditions and ensure proper risk management.