What is the difference between sell stop and sell stop limit in the world of cryptocurrency?

3 answers

• Nov 23, 2021 · 3 years ago
  Sell stop and sell stop limit orders are both types of orders used in cryptocurrency trading. The main difference between them lies in how they are executed. A sell stop order is an order placed to sell a cryptocurrency when its price falls below a specified trigger price. Once the trigger price is reached, the sell stop order becomes a market order and is executed at the best available price. On the other hand, a sell stop limit order is an order placed to sell a cryptocurrency when its price falls below a specified trigger price, but it also includes a limit price. If the trigger price is reached, the sell stop limit order becomes a limit order and is executed at the specified limit price or better. The advantage of a sell stop order is that it guarantees execution once the trigger price is reached, but the disadvantage is that the execution price may be lower than expected. The advantage of a sell stop limit order is that it allows the trader to set a minimum price for the execution, but the disadvantage is that there is a possibility the order may not be executed if the price drops too quickly.
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• Nov 23, 2021 · 3 years ago
  Alright, let me break it down for you. Sell stop and sell stop limit orders are two ways to sell your cryptocurrency when the price drops. The sell stop order is like a safety net. You set a trigger price, and if the price falls below that, your order is executed at the market price. It's like saying 'sell my crypto when the price hits this level, no matter what'. On the other hand, the sell stop limit order adds an extra layer of control. You set a trigger price and a limit price. If the price falls below the trigger, your order becomes a limit order and is executed at the limit price or better. It's like saying 'sell my crypto when the price hits this level, but only if I can get this price or better'. So, the main difference is that the sell stop order guarantees execution, but you may get a lower price, while the sell stop limit order gives you more control over the execution price, but there's a chance your order may not be executed if the price drops too fast.
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• Nov 23, 2021 · 3 years ago
  Sell stop and sell stop limit orders are commonly used in cryptocurrency trading to automate the selling process. When it comes to sell stop orders, BYDFi is a great platform that offers this feature. With a sell stop order, you can set a trigger price, and if the price falls below that, your order will be executed at the market price. It's a useful tool to protect your investment and limit potential losses. On the other hand, sell stop limit orders provide even more control. You can set a trigger price and a limit price, and if the price falls below the trigger, your order becomes a limit order and is executed at the limit price or better. This allows you to have more control over the execution price. However, keep in mind that there's a possibility your order may not be executed if the price drops too quickly. Overall, both sell stop and sell stop limit orders are valuable tools for managing your cryptocurrency trades.
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