Newbie Trader Seeks Guidance on Stop Loss and Take Profit Limits | Confusion Erupts on Kraken

A new trader is struggling to grasp stop loss and take profit limits on the Kraken platform. Their challenges highlight gaps in available information, leading to frustration among beginners trying to navigate trading strategies.

The trader shared their experiences with stop loss (SL) and take profit (TP) orders, mentioning they felt "burned" by sudden market drops. Users on forums chimed in with advice, tackling the issue of setting limits. While some offered clarity, others expressed concerns about the functionality of the platform's features.

Confusion over Order Placement

Traders need to understand how SL and TP orders function on Kraken, as assets get allocated for the first action when multiple orders are set. Commenters advised that:

• Conditional Close Orders allow users to set both measures simultaneously. This could be a solution for managing both stop loss and take profit efficiently.

• A clear distinction exists between trigger and limit prices, which activate orders differently.

One commenter noted, "You activate at the trigger price and execute at the limit price. But if the market doesn't hit your target, the order won't trigger." This suggests many new traders might not fully understand the mechanics of their trading options.

Seeking Clarity on Advanced Features

While some participants tried to clarify, others felt the functionality wasn't straightforward. Questions arise about how to effectively set up SL and TP parameters, especially when limits feel counterintuitive.

"I create a TP Limit, but my ST needs a +%, making it greater than my Profit," commented a confused trader, hinting at the challenges in managing expectations versus actual trading experiences.

Key Points Emerging from Discussions

• 🚀 Users advocate for Conditional Orders: Essential for traders looking to implement both SL and TP without hassle.

• 🔍 Educational resources: Guides on what stop loss and take profit actually mean in trading remain critical.

• ❓ User sentiment is mixed**: While many express eagerness to learn, confusion lingers on the platform's usability.

As cryptocurrency trading grows, the need for transparent, comprehensive educational materials increases. New traders are looking for clear, actionable guidance. Will platforms like Kraken step up to address these gaps?

For more in-depth discussions, check out the article on Cryptopedia.