How does a stop limit order differ from a stop loss order in the context of digital currency trading?

1 answers

• Dorra MuhammadOct 05, 2022 · 3 years ago
  Stop limit orders and stop loss orders are two commonly used order types in digital currency trading. The main difference between them lies in how they are executed. A stop limit order is a combination of a stop order and a limit order. It is triggered when the market price reaches a specified stop price. Once triggered, the order becomes a limit order and is executed at a specified price or better. This means that the order will only be executed at the specified price or better, but there is no guarantee that the order will be filled. On the other hand, a stop loss order is triggered when the market price reaches a specified stop price. Once triggered, the order becomes a market order and is executed at the best available price. This means that the order will be filled, but the execution price may be different from the stop price. In summary, a stop limit order provides more control over the execution price, while a stop loss order guarantees execution but not the execution price.
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