The breakeven stop loss moves your order to the breakeven position when the price reaches the specified value.

For example:

  1. You bought 1 ETH for $100. You decide to risk 10% in the deal but expect a profit of 10-30%.
  2. You put a stop loss at $90 and place three take profit orders in split targets with 10% steps, so; Take Profit step 1 is $110, TP step 2 is $120 and TP step 3 is $130.
  3. Upon reaching the first take profit order ($110), the stop is transferred from $90 to the entry price ($100 + exchange commission).
  4. Upon reaching Take Profit step 2 ($120), the stop loss is moved up again from $100 to the Take Profit step 1 price ($110), etc.

As can be seen in the table above, the price of Ethereum fell, but the stop was not triggered, then the price started to rise, and when the price reached the first take profit of $110, the stop was transferred to breakeven, at the level of $100. Then, as the price increased, the stop was moved to the previous Take Profit level. Finally, when the price experienced a sharp drop, the stop was triggered at the Take Profit step 4 price.

Therefore, the higher the price of the coin rises from the initial entry point, the higher the breakeven stop loss gets. If the price falls, a breakeven stop loss does not move.

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