A Stop limit is a conditional trade to buy and sell crypto that acts to stop any loss over a set limit price.
A Buy/Sell limit order is triggered once the price of a selected coin reaches specified Stop Price (this price needs to be defined by you).
The Stop limit feature is helpful in preventing excessive losses and is a secure way to automate orders without constantly needing to watch the market.
There are 3 components to the stop limit feature:
- Quantity: Amount(fiat) or quantity(crypto) you would like to buy/sell at the limit price.
- Stop Price: When the last traded price reaches a given stop price, your stop order(buy/sell) will be triggered at that specified price.
- Limit Price: The Price at which the stop limit order (buy/sell) is placed in the order book.
Example: Let's say you have bought 1 BTC at €3500. You notice a price drop and you may want to exit your position at nothing less than €3400 EUR to prevent further loss.
You will need to place a sell stop limit order with the limit price at €3400 and a stop price of €3405.
Once the price reaches €3405, it will automatically trigger your BTC sell order at €3400.
- A Buy stop limit order is triggered when the last traded price reaches or exceeds the stop price of the order. For a buy stop limit order, the limit price must be greater than or equal to stop price.
- A Sell stop limit order is triggered when the last traded price reaches or falls below the stop price of the order. For a sell stop limit order, stop price must be less than the last traded price.
- A Stop limit order will revert to a normal limit order once triggered.
To use this feature:
- Select the cryptocurrency you wish to trade in.
- Below the price ticker, tap on Stop Limit.
- Set the limits as per choice.
- Complete your trade details and Execute.