Centralized exchanges are often perceived as the first entry place for crypto traders. The simplicity and regulation compliance allows them to attract a wide range of users, going from beginners to professionals.
However, due to the recent scandals in the centralized exchange industry, notably with FTX, many users are moving towards decentralized exchanges which provide higher security and self-custody of their funds.
In this article we will take a look at our platform’s two new features:
- Stop Loss and take profit in 1 order
- Trailing Stop
The CEX features
It’s not a secret, CEXs are the place that offers the most features to their users, whether in terms of trading options or general investment opportunities. Due to these offerings, they succeeded to attract a significant part of the market share and volume.
Following the long existence of Centralized exchanges and large fundings/revenues, they had plenty of opportunities to develop features that are used by a majority of traders.
However, with the recent emergence of perpetual trading DEX, these started to grab a part of the CEX market share. The ability to have full funds custody while avoiding regulations and KYC are significant features that traders are looking for.
Unfortunately, due to the general fragmentation of DeFi projects, a multitude of projects are diluting the various offers that CEX provides, forcing users to adopt multiple platforms to match the services they were used to having on a CEX.
This is an issue that Metavault is addressing since its inception. Providing CEX-like trading features while having the decentralization and advantages that DEX provides.
As a result, Metavault is the first DEX to integrate the trailing stop function, a widely demanded feature by the perp DEX community and traders.
What is a trailing stop function?
A trailing stop function is a type of order that allows traders to secure profits while also limiting potential losses. It works by automatically adjusting the stop loss level for a trade in favor of the current market price.
The main advantage of using a trailing stop function is that it allows traders to stay in a profitable trade for as long as possible while also protecting against a potential drop in the market. This can be especially useful for swing traders who are looking to hold a position for an extended period of time, as it allows them to enjoy market fluctuations while still protecting their profits.
Trailing stops can also be mixed with other types of orders, such as limit orders, to create a more complete trading strategy.
There are a few different types of trailing stop functions available, such as:
- Percentage-based trailing stop: This type of trailing stop is based on a percentage of the current market price. For example, a trader may set a trailing stop to move up by 1% for every 1% increase in the market price.
- Dollar-based trailing stop: This type of trailing stop is based on a fixed dollar amount. For example, a trader may set a trailing stop to move up by $1 for every $1 increase in the market price.
- Time-based trailing stop: This type of trailing stop is based on time, rather than price. For example, a trader may set a trailing stop to move up every time the market has been profitable for a certain number of days.
Each of these types of trailing stop functions can be beneficial depending on the trader’s strategy and risk tolerance.
A trailing stop function is a valuable tool for traders looking to secure profits, manage risk, and stay away from the graph once in a while — and stay in their open position.
What type of trailing stop is available on Metavault?
Metavault is implementing a percentage-based function where traders input the price percentage they’re willing to absorb.
The percentage-based solution is the most commonly used among exchanges and traders and is also the simplest to use and set up.
It’s important to note that the percentage is based on the price movement and not on the margin collateral position.
How to use the function?
The trailing stop function has been made to be easily settled and provide, to put it in place you will have to go on the trading platform:
Firstly, if you are opening a new position, you can set up a trailing stop or take profit order during the opening process. This will ensure that your position is automatically closed at a specified price level if the market moves against you, helping to limit your losses and protect your profits.
If you already have an existing position, you can still add a trailing stop order to it. This can be done by navigating to the position in the platform and selecting the option to add a trailing stop. Once this is set up, your position will be automatically closed if the market moves against you by a specified percentage, helping to reduce your risk.
You can also adjust the percentage of your existing trailing stop order to ensure that it is optimally tailored to your trading strategy.
That’s it, you now can set up the trailing stop feature as you wish, and take advantage of it in your trading journey → https://app.metavault.trade/#/trade
Fees
Metavault charges a variable position fee for a successful stop using the trailing stop function. You can check the fees which will be deducted, from the repayment balance.
We understand that some of you may have existing positions or orders on our platform, and we want to assure you that these will not be affected by the upgrade. For those with open orders, we will continue supporting them for 7 days after the migration through a temporary 2nd interface. However, we kindly recommend that you cancel and resettle your orders to take full advantage of the new features via this interface
https://cancel-order.metavault.trade/
During the cancellation process, any fees and funds will be refunded to your account, so you can start fresh and use the new tools to take your trading to the next level.
Conclusion
2023 will be a crucial year for Decentralized exchanges, their development will become a major reason for attracting users and traders from centralized exchanges towards decentralization.
Metavault and other DEXs are constantly working towards their final objective: providing users with the best trading experience while not requiring any centralized entity to perform the exchange.
Try the Trailing stop feature here → https://app.metavault.trade/#/trade
