What is the difference between limit and stop on quote in cryptocurrency trading?

3 answers

• Feb 18, 2022 · 3 years ago
  A limit order is an instruction to buy or sell a cryptocurrency at a specific price or better. It allows traders to set a maximum price they are willing to pay for a buy order or a minimum price they are willing to accept for a sell order. On the other hand, a stop on quote order is a type of order that becomes a market order when the specified stop price is reached. It is often used as a risk management tool to limit losses or protect profits. So, the main difference is that a limit order sets a specific price for execution, while a stop on quote order triggers a market order when a specific price is reached.
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• Feb 18, 2022 · 3 years ago
  Alright, here's the deal. A limit order is like setting a price limit for your trade. You tell the exchange, 'Hey, I want to buy this cryptocurrency, but only if the price is below $X or sell it if the price is above $Y.' It's like haggling with the market. On the other hand, a stop on quote order is like a safety net. You set a price at which you want to trigger a market order. So, if the price drops to that level, your order is executed at the best available price. It's like an emergency exit strategy.
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• Feb 18, 2022 · 3 years ago
  In cryptocurrency trading, a limit order is an order to buy or sell a cryptocurrency at a specific price or better. It allows traders to have more control over the price at which their order is executed. On the other hand, a stop on quote order is a conditional order that becomes a market order when the specified stop price is reached. It is commonly used to limit losses or protect profits. So, the main difference between the two is that a limit order sets a specific price for execution, while a stop on quote order triggers a market order when a specific price is reached. Hope that clarifies things for you!
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