What is the difference between a limit order and a stop order in the context of cryptocurrency trading?

1 answers

• Nov 29, 2021 · 3 years ago
  In the context of cryptocurrency trading, a limit order allows you to set a specific price at which you want to buy or sell a cryptocurrency. It gives you more control over the execution price, but there is no guarantee that your order will be filled. On the other hand, a stop order is used to limit losses or protect profits by triggering a market order when the specified price is reached. It ensures that your order will be executed once the price reaches the stop price, but you have less control over the execution price. Understanding the difference between these two order types is crucial for successful cryptocurrency trading.
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