03 September, 2020 

Got A Question: What Is A Stop-Limit Order And How To Use It?

The growing popularity of cryptocurrency trading leads to the development of those tools that an experienced crypto trader cannot trade without
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Got A Question: What Is A Stop-Limit Order And How To Use It?

To make the crypto trading process more profitable and faster, various types of orders are used in crypto trading. On the BTC-Alpha platform, a Stop Limit was launched — an order to buy or sell, which is executed in a certain price range and goes into a limit order when it reaches or surpasses the specified stop price.

The stop-limit includes the limit price at which the order will be executed if the stop price is reached and overcome when buying, as well as if the second component of the order falls below this price when selling.

What Is The Advantage Of Stop-Limit Orders?

Such order makes it possible to keep your assets in case of partial confidence of the trader in the behavior of the selected currency rate (i.e., a trader can predict the growth of a selected asset - and for this, he can place a stop-limit order if his forecast turns out to be incorrect and the asset falls in price). A stop limit is a good risk management tool in the event of selling and a successful indicator of a bullish coin when buying.


How Should You Use A Stop-Limit Order?

To use stop-limit orders, log into your BTC-Alpha account, and navigate to the desired trading pair. Next, click on the «Stop Limit» tab and set the stop and limit price, as well as the number of coins that you want to put up for sale/purchase.

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Make sure you entered everything correctly. Then you should click on the «Buy» or «Sell» button to place an order. In the pop-up window that appears, you can confirm the procedure.

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You can scroll the page after confirmation. There you can see which orders you have currently opened.

We Recommend To Read: What Active Orders Are (In Russian | In English)

The stop-limit order will remain outside the order book until the stop price condition is reached (the condition is formed during the confirmation of order creation). When the condition is met, the system will automatically make the order limit at the price you specified earlier in the «Limit price» field. From that moment on, it behaves like a normal limit order. You will know that the order has entered the order book (order book) when the Trigger column indicates that the stop price was reached (triggered).

When stop conditions are triggered, the order can be automatically executed or remain in the order book. It depends on market conditions and price limits. If several stop orders in the system reach the conditions of the stop price, then their entry into the order book will occur in the order of adding orders to the crypto exchange.

If you still have questions about how stop orders work, you can always ask our Customer Support Service — BTC-Alpha's experts will be happy to help you in resolving any issues related to cryptocurrency trading.

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