SnapEx offers isolated trading mode, so it's necessary to set Take Profit and Stop Loss. Setting Take Profit and Stop Loss is also an indispensable ability and skill in the investment. It measures Whether an investor can profit at the correct price or close the position in time to reduce losses.
Unlike general financial products and financial derivatives, cryptocurrencies generally cannot obtain effective potential prices by fundamental analysis, thus adopting the mode of isolated trading/Take Profit & Stop Loss can better obtain investment profit and reduce the loss of the equity part. You can flexibly adjust the price of Take Profit and Stop Loss when opening or holding a position.
The following will explain in detail why SnapEx offers isolated trading / Take Profit and Stop Loss mode:
The cross trading mode is generally applied to financial derivatives markets with potential leverage such as commodity futures contracts and foreign exchange swaps. The underlying assets of the above financial derivatives can usually be effectively analyzed through fundamentals, and professional institutions have also released many analysis reports. So the underlying assets are less volatile. When investors adopt cross trading mode, they can use the risk value model to conduct subjective risk control management.
Different from above asset investment methods, cryptocurrency and cryptocurrency contract investments generally adopt technical analysis methods, and their price volatility is large. Cross trading mode will result in a great retracement of the investment performance, and investors' equity may even be forced to be fully liquidated under the influence of the multiplier of the leverage characteristics.
In view of above limitations, SnapEx offers customers with a simpler, more convenient and controllable isolated trading mode. Users can choose the margin and leverage to conduct isolated trading based on their risk tolerance.