Stop-Limit Order

A stop-limit order includes 2 prices: a stop price and a limit price. When the asset reaches the stop price, the order is executed at the limit price or better, never lower. A stop-limit order will typically run out of fuel (will be unfilled) if the market moves too quickly past the limit at which the order is supposed to be executed.

For crypto traders who are in a position in fast-moving markets, stop-limit orders give them precise control over the way they can exit and enter the market without losing their price control. Keep in mind that with stop-limit orders, your trade may not always go through. A limit order may never be executed at the limit price or at all if the security drops quickly in price or gaps down. This could lead to a loss of profit opportunities if the right prices are not pursued.

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