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

3 answers

• Dec 16, 2021 · 3 years ago
  Stop on quote and stop limit on quote are two different types of orders used in cryptocurrency trading on Etrade. Stop on quote orders are triggered when the market price reaches a specified level, while stop limit on quote orders are triggered when the market price reaches a specified level and then executed at a limit price. For example, let's say you want to buy a cryptocurrency at a certain price, but you only want to execute the order if the price reaches a certain level. In this case, you would place a stop on quote order. Once the market price reaches the specified level, the order is triggered and executed at the best available price. However, there is no guarantee that the order will be executed at the exact price you specified. On the other hand, if you want to buy a cryptocurrency at a certain price and ensure that the order is executed at that price or better, you would place a stop limit on quote order. Once the market price reaches the specified level, the order is triggered and converted into a limit order at the limit price you specified. This means that the order will only be executed at the limit price or better. The advantage of stop on quote orders is that they are executed immediately once the market price reaches the specified level, which can be useful for traders who want to enter or exit a position quickly. However, the disadvantage is that there is no guarantee of the execution price. On the other hand, stop limit on quote orders provide more control over the execution price, as they are converted into limit orders. This can be beneficial for traders who want to ensure that their orders are executed at a specific price or better. However, the disadvantage is that there is a possibility that the order may not be executed if the market price does not reach the specified level. In summary, stop on quote orders are triggered and executed at the best available price once the market price reaches a specified level, while stop limit on quote orders are triggered, converted into limit orders, and executed at the limit price or better once the market price reaches a specified level.
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• Dec 16, 2021 · 3 years ago
  Stop on quote and stop limit on quote are two different types of orders used in cryptocurrency trading on Etrade. Stop on quote orders are triggered when the market price reaches a specified level, while stop limit on quote orders are triggered when the market price reaches a specified level and then executed at a limit price. Stop on quote orders are useful for traders who want to enter or exit a position quickly, as they are executed immediately once the market price reaches the specified level. However, there is no guarantee of the execution price. On the other hand, stop limit on quote orders provide more control over the execution price, as they are converted into limit orders. This means that the order will only be executed at the limit price or better. Traders who want to ensure that their orders are executed at a specific price or better can use stop limit on quote orders. However, there is a possibility that the order may not be executed if the market price does not reach the specified level. In conclusion, the main difference between stop on quote and stop limit on quote orders is the way they are executed. Stop on quote orders are executed immediately at the best available price, while stop limit on quote orders are converted into limit orders and executed at the limit price or better.
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• Dec 16, 2021 · 3 years ago
  Stop on quote and stop limit on quote are two different types of orders used in cryptocurrency trading on Etrade. Stop on quote orders are triggered when the market price reaches a specified level, while stop limit on quote orders are triggered when the market price reaches a specified level and then executed at a limit price. Stop on quote orders are great for traders who want to quickly enter or exit a position, as they are executed immediately once the market price reaches the specified level. However, the downside is that there is no guarantee of the execution price. On the other hand, stop limit on quote orders provide more control over the execution price. These orders are converted into limit orders, which means that they will only be executed at the limit price or better. Traders who want to ensure that their orders are executed at a specific price or better can use stop limit on quote orders. However, there is a risk that the order may not be executed if the market price does not reach the specified level. To summarize, stop on quote orders offer quick execution but no guarantee of the execution price, while stop limit on quote orders provide more control over the execution price but may not be executed if the market price does not reach the specified level.
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