Take Profit Market
This order type is a variant of a take profit order, wherein an asset is divested as a market order upon reaching a predefined price trigger.
The primary issue with this order type is that it can be subject to slippage, meaning that as the order attempts to sell, there may be a difference between the original trigger price and the average execution price. An additional drawback of the take profit market order is that if it is triggered amidst a volatility spike, it may result in significantly fewer profits than intended.
How it is usedRobin purchased $1,000 worth of AXO tokens at $10 each with a take profit market order. He is a diligent trader, so he hasn’t sold in the upwards trajectory, and instead waits for his trigger price to activate. Once it hits $15, his trigger price is activated and a market order is deployed, selling the initial tokens he acquired. Through this, Robin will have locked in a profit of roughly 50%, or as close as the market conditions, allow irrespective of whether the price might go up or down from that level, he is guaranteed fast execution due to the market order.
Start using take profit market orders now
Axo puts you in charge of your assets and empowers you to create and define what value means. We give you the precision tools that few professional traders have access to.