Conditional Close coming to zondacrypto!

Your Smart Exit Strategy, What Are Conditional Close?

Trading cryptocurrencies involves inherent risk. That's why it’s essential for every investor to have tools that can help reduce potential losses while also automatically securing profits.

Such tools are conditional close, commonly known as Stop Loss (SL) and Take Profit (TP). These orders are designed to reduce loss exposure and automate profit-taking once the market hits a price you’ve set.On the zondacrypto platform, conditional orders can be added only to so-called long positions meaning trades where the user buys crypto with the intention of selling it later at a higher price. You can set a conditional order for both Limit And Market order types. Their purpose is to trigger an automatic system reaction when the market price reaches your predefined level.

Explore Risk Management Tools

• Stop Loss (SL) – Limit Potential Losses

Stop Loss is a kind of “trigger” designed to minimize potential losses. You set a price level at which your purchased crypto will be automatically sold if its value drops too much.

How it works:
You define an SL activation price, the level below which you no longer want to stay in the position. Once the market price hits or falls below that point, the system places a Market order to sell the asset.

Note: the Stop Loss price is the trigger price not necessarily the price at which your crypto will be sold. It initiates a Market order that sells your crypto at the best available price at the time. In fast-moving or low-liquidity markets, the final execution price may be lower than the activation price due to slippage.

Example:
A user buys 1 BTC at 300,000 PLN and sets an SL at 280,000 PLN. If the market drops to 279,900 PLN, the Stop Loss is triggered, and the BTC is sold at the best available market price, e.g., 279,500 PLN or lower.

• Take Profit (TP) – Secure Your Gains

Take Profit helps you automatically secure profits once the price hits a desired level. It allows you to exit the trade before the market potentially reverses.

How it works:
You set a TP activation price, the level at which your position should be closed. When the market price hits or surpasses this level, the system places a Limit order to sell the full amount of your crypto at that price or higher.

Example:
A user buys 1 BTC at 300,000 PLN and sets TP at 320,000 PLN. When the market hits 321,000 PLN, a Limit order is placed at 320,000 PLN. If there are buyers at or above that price, the 1 BTC is sold.

 

The Strategic Duo: Combine Stop Loss with Take Profit

Users can add both a Stop Loss and a Take Profit to the same base order. This way, you protect both sides of the trade: minimizing losses and securing profits. Once the base order is fully filled, the first conditional order (TP or SL) to reach its trigger price will be activated.

Example:
You buy 1 BTC for 300,000 PLN and set a Stop Loss at 295,000 PLN and Take Profit at 305,000 PLN. If the price hits 305,000 PLN first, the Take Profit triggers. If it drops to 295,000 PLN first, the Stop Loss activates.

If only part of the order is filled and the price moves quickly, both TP and SL may activate for only part of the trade. The base order remains active until fully executed.

 

Important Rules of Conditional Close

1. Triggering One Order Doesn’t Cancel the Other

If one of your conditional close is triggered (e.g., SL), the other one (e.g., TP) is not automatically canceled. You’ll need to manually cancel it in the app.

2. Funds Remain Locked Even After a Full Base Order Execution

Even if your entire base order is filled, as long as your SL and TP are still active, the funds will be marked as “locked” and won’t be available for other operations (like withdrawal) until you cancel the conditional close.

Be a Smart Trader: Understand the Risks

Stop Loss Risks:

1. The price may briefly dip below your SL and then rebound.

2. Heavy market drops may result in sales far below your trigger price.

3. Lack of buyers could mean the Market order doesn’t fill.

4. Extreme price drops could invalidate the order due to minimum value limits.

5. Other unforeseen market factors may affect execution or slippage.

Take Profit Risks:

1. The price may soar well beyond your TP, and extra profits are missed.

2. TP may trigger, but the market might reverse before full execution.

3. Insufficient buyers could delay or prevent the full sale.

4. Small TP trades may not meet the platform’s minimum order size.

5. Just like regular orders, conditional orders can also be impacted by unexpected market behavior.

Stay Educated, Stay in Control

The most important element of trading is constant learning. Understanding your tools and the risks involved helps you make informed decisions. Crypto markets offer a range of possibilities including conditional close, staking, airdrops, and active trading.

Want to expand your knowledge of crypto and trading?
Visit our Academy and unlock the full potential of the crypto world!

👉  Conditional close go live on zondacrypto on June 16