What is a stop-loss order in crypto trading?

A stop-loss is an order that automatically closes your position when price reaches a specified level, limiting your loss on the trade. For a long position, the stop-loss is set below your entry price. When price falls to that level, the exchange closes the trade and you exit with a predefined, controlled loss. Stop-losses are essential for risk management — they prevent small losses from becoming catastrophic.

What risk-reward ratio should I use for crypto trading?

A minimum risk-reward ratio of 1:2 is widely recommended — meaning your take-profit target is at least twice your stop-loss distance. At 1:2, you only need to win 34% of trades to be breakeven. Many professional traders use 1:3 or higher. The calculator lets you set any R:R ratio and instantly shows the exact take-profit price level to target.

How do I set a take-profit level in crypto trading?

Take-profit levels should be set at significant technical levels: previous resistance (for longs), previous support (for shorts), round numbers, or at a specific R:R ratio from your entry. Enter your entry price, stop-loss distance, and desired R:R ratio in the calculator — it outputs the exact take-profit price. Avoid placing take-profits in the middle of a range where no strong technical level exists.

What is the difference between a stop-loss and a liquidation price?

A stop-loss is an order you manually set to exit a losing trade at a price you choose. A liquidation price is the forced exit imposed by the exchange when your margin is exhausted — you lose all your margin. Your stop-loss must always be set above your liquidation price (for longs) so you exit with a controlled loss before the exchange liquidates you.