How does a stop limit order work in the context of cryptocurrency trading?

1 answers

• douglas-e-greenbergAug 03, 2020 · 5 years ago
  Stop limit orders are commonly used by traders to protect their profits or limit their losses. For example, if you have bought a cryptocurrency at a lower price and want to secure your profits, you can set a stop limit order with a stop price slightly above your purchase price and a limit price at your desired profit level. This way, if the market price reaches your stop price, your order will be triggered and you will be able to sell your cryptocurrency at a profit. On the other hand, if you want to limit your losses, you can set a stop limit order with a stop price slightly below your purchase price and a limit price at your desired loss level. If the market price reaches your stop price, your order will be triggered and you will be able to sell your cryptocurrency at a smaller loss than if you had not set a stop limit order.
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