How to Safeguard Gains with Market Orders A TradFi and Digital Asset Comparison

Managing investments effectively is essential, especially when you’re striving to protect gains and minimize risks. Whether you’re trading in traditional financial markets (TradFi) or dabbling in digital assets like cryptocurrency, one powerful tool you can use is the market order. Additionally, trading platforms like iTrustCapital now allow you to take advantage of conditional sales, a feature that helps automate trades and protect profits.

This blog will simplify market orders, compare their application in TradFi and digital asset investing, and walk you through steps to execute conditional sales on iTrustCapital. With these strategies, you’ll have the confidence to safeguard your gains while navigating unpredictable markets.

What Are Market Orders?

A market order is a command to buy or sell an asset immediately at the current market price. Unlike other order types, such as limit orders or stop-loss orders, market orders prioritize execution speed over price control. This makes them a popular choice for investors who want to secure their gains or enter/exit positions quickly.

Example in TradFi:

Imagine you own shares of Company ABC, which are currently trading at $100 per share. You believe the stock is reaching a peak and decide to sell it before the price dips. By placing a market order, your shares will be sold immediately at the best available price. While this price may slightly differ due to market fluctuations, the order ensures a fast transaction.

Example in Digital Assets:

Let’s say you’re holding Bitcoin (BTC), which has climbed to $30,000. If you fear a sudden pullback, you can place a market order to sell your BTC right away, locking in your gains at or near $30,000.

Why Market Orders Are Useful for Safeguarding Gains

Market orders are valuable tools for protecting profits in volatile markets, whether you’re trading stocks or cryptocurrencies. Here are a few benefits:

1. Speed: Market orders execute almost instantly, ensuring you can lock in gains without delays.
2. Simplicity: They are easy to use, making them accessible even for beginner investors.
3. Price Movement Protection: In fast-moving markets, a delay in selling could result in significant losses. Market orders help minimize this risk.

Comparing Market Orders in TradFi and Digital Assets

Feature	TradFi (Stocks/ETFs)	Digital Assets (Crypto)
Execution Speed	Usually executes during market hours (e.g., 9:30 AM–4:00 PM).	Executes 24/7 on crypto exchanges.
Fees	May include brokerage fees or commissions.	Lower fees, especially on decentralized exchanges.
Market Hours	Limited to trading hours of stock exchanges.	Always open; trades can occur at any time.
Price Volatility	Generally moderate price changes.	High price fluctuations, especially during major events.
Order Process	Executed via brokers or trading platforms like Fidelity.	Handled through crypto exchanges or platforms like iTrustCapital.

In TradFi, market orders are executed during trading hours, which can limit flexibility. On the other hand, digital asset markets operate 24/7, providing traders with around-the-clock opportunities to safeguard gains.

Introducing Conditional Sales for Enhanced Protection

While market orders are effective, conditional sales provide an added layer of security. A conditional sale is an automated feature that triggers a trade when a specific condition is met. This can include stop-loss orders, take-profit orders, or even combined strategies.

Benefits of Conditional Sales:

1. Automation: Set rules for buying or selling without needing to monitor markets constantly.
2. Risk Mitigation: Protect against sudden price drops or lock in gains when an asset reaches your target price.
3. Stress-Free Trading: Focus on long-term goals while the system handles short-term movements.

How to Place Conditional Sales on iTrustCapital

iTrustCapital is a trusted platform for trading digital assets within a tax-advantaged Individual Retirement Account (IRA). If you’re a crypto investor using iTrustCapital, here’s a simple guide to placing conditional sales to safeguard your gains:

Step-by-Step Guide:

1. Log in to Your iTrustCapital Account Open your account dashboard using your login credentials.
2. Select the Digital Asset Choose the cryptocurrency you wish to safeguard. For example, Bitcoin (BTC) or Ethereum (ETH).
3. Choose “Conditional Orders” Navigate to the “Conditional Orders” or “Advanced Trading” section in your account.
4. Set Your Conditions
   • Take-Profit Order: Specify the price at which the system should automatically sell your asset to secure gains. Example: If BTC is trading at $30,000, you might set a take-profit order at $32,000.
   • Stop-Loss Order: Set a price at which your asset will be sold to minimize potential losses. Example: If BTC falls to $28,000, the order will trigger a sale to limit your loss.
5. Review and Confirm Double-check your conditions and confirm the order. The platform will now monitor the market and execute your trade automatically.
6. Track Progress Use the dashboard to monitor your active orders and adjust them as needed.

By leveraging these tools, you can take control of your trading strategy and reduce the emotional strain of making decisions in volatile markets.

Safeguarding Gains Beyond Conditional Sales

While market orders and conditional sales are effective, consider these additional strategies to further protect your profits:

1. Diversification: Spread your investments across different asset classes to reduce risk.
2. Rebalancing: Regularly adjust your portfolio to align with your financial goals.
3. Dollar-Cost Averaging: Invest fixed amounts at regular intervals to mitigate the impact of market volatility.

Risks and Considerations

As with any investment strategy, there are risks to keep in mind:

• Market Volatility: Digital assets are prone to significant price swings, which can affect execution prices.
• Slippage: For market orders, the execution price may differ slightly from the expected price.
• Platform Reliability: Ensure your trading platform, like iTrustCapital, is reputable and secure.

By staying informed and using the right tools, you can minimize risks and optimize your returns.

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Disclaimer: The information in this blog is for educational purposes only and does not constitute financial advice. Investing in Traditional Finance and Web 3 assets, including cryptocurrencies and precious metals, involves significant risks, including the potential loss of principal. Always conduct your own research and consult a qualified financial advisor and/or tax advisor before making investment decisions. Past performance is not indicative of future results.