We would like to inform you that the main functions of Stop-Loss are as follows:

• Loss Limitation
  The most basic function of stop-loss is to limit losses. By setting a stop-loss level at a certain price, investors can ensure that their position will be automatically closed if the price falls to an adverse point. This allows investors to avoid larger losses if the market moves significantly against their position.
• Risk Management
  Stop-loss helps in risk management by avoiding emotional decisions in volatile market situations. In the crypto market, where prices can fluctuate drastically in a short period of time, having an automated mechanism like stop-loss allows investors to stay disciplined and follow their trading plan without having to monitor the market constantly.
• Capital Management
  By using stop-loss, investors can manage their capital more efficiently. This allows them to determine how much of their capital they are prepared to risk on a trade and minimize the risk of large losses that could threaten their entire portfolio.
• Avoiding Big Losses on Bad Trend
  In situations where market trends reverse suddenly, stop-losses can prevent losses from getting bigger. For example, if you buy Bitcoin and the price starts to fall sharply, the stop-loss you have set will ensure that your position is closed before your losses worsen.
• Boosts Confidence
  With a stop-loss in place, traders can feel more confident in taking positions as they know that they have set a limit to the losses that will be taken automatically. This can help reduce stress and provide peace of mind in trading.