A user can for instance use a buy stop limit order by setting the trigger price on an identified resistance with a limit order being placed slightly higher. This is an effective tactic that can be used to manage your risk and more specifically to minimise your losses while trading on our platform.Ī Buy Stop-Limit order is a pending order that will execute a Buy Limit order once your desired stop or trigger price has been reached.Ī buy stop limit order can be placed when the trigger price set is higher or equal to the last traded price. For instance, a user can use a sell stop limit order to stop additional losses if the price of the coin falls below their desired trigger price by adding a limit order into the book.įor example, if you have identified a support level at around $10000 for the price of Bitcoin as shown above, there is a chance that if the price falls below this support line it could potentially lead to a sudden downturn in the Bitcoin price which in turn, will put you at risk of incurring serious losses on your trades.Ī Sell Stop-Limit can be placed to protect you from this, you would set the stop price at around $10000 so a sell limit order for $9950 will be executed once the market value hits the stop price (Example of Trade shown above). There are two types of stop-limit orders which you could use:Ī Sell Stop-Limit order is a pending order that will execute a Sell Limit order once your desired trigger price has been reached.Ī sell stop-limit order can be placed when the trigger price set is lower or equal to the last traded price. This will be useful to you as a trader because it allows you to open several orders in the market without exposing your capital in a single trade and you can manage your risk more effectively by protecting yourself from sudden price changes in the market.Īdditionally, other people will not see the orders since they are only activated after the price is reached. A Stop-Limit is a pending order that will only execute a trade once the market price hits the desired trigger price you have entered in the trade.
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