Lesson 15 of 17Advanced8 min
How do you set a crypto options stop loss?
Set it in money on the whole position. The stop loss is the loss at which the trade is closed; the target is the profit at which it is booked. A trailing stop then follows the profit up, and stop to cost moves the stop to zero once a set profit is reached. In crypto, the stop must work at any hour.
Real Delta Exchange quotes · 24 Sep, 9:09 am ISTFree, no account needed
Step 1 of 2
A stop and a target, in money
A stop loss is the loss at which the engine closes the trade for you. A target is the profit at which it books the gain.
Here the stop is 6 USDT and the target 4 USDT. Drag the price and watch which line the position touches first.
Profit or loss if the price is 83,956(today's price)
| Date | Profit / loss |
|---|---|
| On target dateThu, 24 Sept | −0.12loss |
| On expiry dateFri, 2 Oct | +21.2profit |
Move over the graph to read any price; tap or click to set it as the target.
The price has not moved. You start 0.12 down: the gap between the price you dealt at and the market's mid price. That is the cost of entering, and time decay earns it back.
Step 2 of 2
Trailing: lock in what you made
A trailing stop follows the profit up. If the trade made 4 and gives back 2, the engine exits with 2 instead of waiting for the full loss.
Stop to cost moves the stop to zero once a set profit is reached, so a winner cannot become a loser. Both live under More protection in the Trade window.
Profit or loss if the price is 83,956(today's price)
| Date | Profit / loss |
|---|---|
| On target dateThu, 24 Sept | −0.12loss |
| On expiry dateFri, 2 Oct | +21.2profit |
Move over the graph to read any price; tap or click to set it as the target.
The price has not moved. You start 0.12 down: the gap between the price you dealt at and the market's mid price. That is the cost of entering, and time decay earns it back.
You sold a strangle for 9. Where should the stop be?
Answer the quick check to finish. Your progress stays in this browser.
Next: When to use weekly, when to use dailyKey terms
- Stop loss
- Closes the trade at a set loss.
- Target
- Books the gain at a set profit.
- Trailing stop
- A stop that follows the profit as it grows.
- Stop to cost
- The stop moved to breakeven once the trade is in profit.
Questions people ask
Where should I put the stop on a sold Bitcoin option?
Where the loss is an amount you are comfortable losing on that trade, set before entry. Many sellers use a multiple of the premium collected.
What is a good profit target for option selling?
Many sellers book part of the maximum profit rather than waiting for expiry, because the last part of the premium carries the most risk. The right level is part of your rules.
Does a stop guarantee the exit price?
No. In a fast crypto move the fill can be worse than the stop level. The stop decides when to exit, not the exact price.
Keep going
- Next · lesson 16When to use weekly, when to use daily
- Lesson 11 · 8 minHow does hedging crypto options work on a sold Bitcoin option?Hedging: cap the risk on one side
- Lesson 12 · 8 minWhat is a Bitcoin iron condor?Hedging both sides: the iron condor
- Use it in AlgoclearStops & trailingIt is part of the strategy, set at entry.
Why money, not option price
A multi-leg position has no single price to put a stop on. Setting the stop and target on the whole position's profit and loss is simpler, and it matches what you actually feel.
A stop that never sleeps
Crypto never closes, so a stop you watch by hand is only as good as your sleep. Algoclear checks every open position every second and exits at your rules, even at 3 am on a Sunday.
Trailing and stop to cost
Once a trade is well in profit, stop to cost makes sure a winner cannot turn into a loser, and a trailing stop locks in more as the profit grows. Both give up a little on trades that dip and recover, in exchange for keeping most of the big ones.
Written by the Algoclear team · Updated 22 September 2026 · Examples use Bitcoin options on Delta Exchange India.
Practise it on real prices.
Every tool is free to explore. Build it, try it on paper, and let the engine run it when you are ready.
Start freeOptions trading carries risk, and you can lose money. Algoclear is a trading tool, not investment advice.