What is the definition of stop limit in the context of cryptocurrency trading?

3 answers

• Dec 18, 2021 · 3 years ago
  A stop limit is a type of order that combines the features of a stop order and a limit order. It allows traders to set a specific price at which they want to buy or sell a cryptocurrency. Once the price reaches the stop price, the order is triggered and becomes a limit order. This means that the order will only be executed at the specified limit price or better. Stop limits are commonly used to manage risk and protect profits in volatile markets.
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• Dec 18, 2021 · 3 years ago
  In simple terms, a stop limit is like a safety net for traders. It helps them automatically buy or sell a cryptocurrency at a specific price. For example, if you set a stop limit to sell a cryptocurrency at $100, once the price drops to $100, your order will be triggered and executed at a limit price you set, such as $99. This can be useful for limiting losses or securing profits in fast-moving markets.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, offers stop limit orders to its users. With a stop limit order, traders can set a stop price and a limit price to automatically buy or sell a cryptocurrency. This feature helps traders manage their risk and take advantage of market opportunities. It's important to note that stop limit orders are not guaranteed to be executed, especially in highly volatile markets. Traders should carefully consider their trading strategy and set appropriate stop and limit prices.
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