What are the risks associated with using bracketed orders in cryptocurrency trading?

3 answers

• Dec 18, 2021 · 3 years ago
  One of the risks associated with using bracketed orders in cryptocurrency trading is the potential for slippage. Slippage occurs when the execution price of an order differs from the expected price. This can happen due to market volatility or low liquidity. Traders should be cautious when setting the price range for their bracketed orders to minimize the risk of slippage.
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• Dec 18, 2021 · 3 years ago
  Another risk is the possibility of order cancellation. If the price of the cryptocurrency moves rapidly and reaches the stop price of the bracketed order, the order may be cancelled before it can be executed. This can result in missed trading opportunities or unexpected losses. Traders should closely monitor the market conditions and adjust their bracketed orders accordingly to mitigate this risk.
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• Dec 18, 2021 · 3 years ago
  When using bracketed orders, it's important to consider the risk of market manipulation. Some traders may intentionally manipulate the price of a cryptocurrency to trigger the execution of bracketed orders and profit from the price movement. Traders should be aware of this risk and use additional indicators or analysis to confirm the validity of price movements before placing bracketed orders.
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