HomeRisk ManagementRisk Management: Why & Basic Terms
Risk Management for beginnersLevel: Beginner

Terminology

Entry price — this is the price level you believe has the highest probability of success.

Stop loss — a stop loss order sells off your coin if its price reaches a certain limit.

Target price — target price defines how much money you’re hoping to gain in absolute terms.

Position size is how much of a coin you need to buy in order to execute to your strategy.

Market order — market order fills the order immediately, without respect to price.

Risk per trade — your total risk will determine the maximum amount of money you can lose in trade.

Minimum target price — your minimum target price is the least amount of money you need to make in winning trades to break even.

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