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Stop-Limit Order

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Akshay

Namaste Tribe!



A stop-limit order is a type of limit order which helps traders protect their profits & limit their losses—essentially mitigating risks associated with volatile market movements. To set up a stop-limit order, you will first need to set the stop price, the limit price and the order volume.

 

Stop Price - This is the price at which your limit order will be triggered so it can be placed in the order book.

Limit Price - The price at which your order will be placed in the order book.

Simply put - when the market reaches or goes through the Stop Price, a Limit Order will be placed at the Limit Price.
 

Tips when placing Stop Limit orders -

The Stop Price and Limit Price can be the same. However, we recommend the following -

For Sell Orders: Set the Stop Price higher than the Limit Price. This will increase the likelihood of your Sell Limit Order being executed. In case the liquidity in the Order Book is low or the market goes through too fast.

For Buy Orders: Set the Stop Price lower than the Limit Price. This will increase the likelihood of your Buy Limit Order being executed. In case the liquidity in the Order Book is low or the market goes through too fast.

Things to remember about Stop Limit orders -

  • Triggering of the Stop Price and placing of the Limit Order does not guarantee that your order will be fully filled or executed. Sometimes, the liquidity may be low at your Limit Price or the market may go through your limit price too fast. In these cases, your Limit Order will remain fully or partially open in the Order Book.
  • Sometimes, while the Stop Price may be triggered, the market may not reach your Limit Price. In this case, too, your Limit Order will remain fully or partially open in the Order Book.
Example (Buy): Let’s say you want to buy LTC when the market price reaches $50, but don’t want to buy above $52. Set a Stop Limit order with a Stop Price of $50 and a Limit Price of $52. When the market reaches $50, your Buy Limit Order for $52 will be automatically placed in the Order Book and matched to the best available sell orders up to $52.
 
Example (Sell): Let’s say you want to sell LTC when the market price reaches $70, and sell everything within $65. Set a Stop Limit order with a Stop Price of $70 and a Limit Price of $65. When the market reaches $70, your Sell Limit Order for $65 will be automatically placed in the Order Book and matched to the best available Buy orders up to $65.
 

How to place a Stop-Limit order?

Desktop iOS Android
  1. From the dropdown menu in the Buy/Sell form, select Stop Limit.
  2. Enter your Stop price.
  3. Enter your Limit price.
  4. Enter the amount of crypto you're looking to buy. You can also use the % buttons to automatically fill the amount.
  5. Click on the Place Order button.
  1. From the dropdown menu in the Buy/Sell form, select Stop Limit.
  2. Enter your Stop price.
  3. Enter your Limit price.
  4. Enter the amount of crypto you're looking to buy. You can also use the % buttons to automatically fill the amount.
  5. Tap on the Place Order button.
  1. From the dropdown menu in the Buy/Sell form, select Stop Limit.
  2. Enter your Stop price.
  3. Enter your Limit price.
  4. Enter the amount of crypto you're looking to buy. You can also use the % buttons to automatically fill the amount.
  5. Tap on the Place Order button.
 

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