What are the advantages and disadvantages of using stop on quote orders in the cryptocurrency market?

3 answers

• Rahbek CoxFeb 05, 2025 · 5 months ago
  Stop on quote orders in the cryptocurrency market can be advantageous for traders who want to limit their losses or protect their profits. When a stop on quote order is placed, it triggers a market order once the specified quote price is reached. This can help traders automatically sell their assets at a predetermined price, even if the market is moving rapidly. However, one disadvantage is that during periods of high volatility, the execution price may differ significantly from the specified quote price, resulting in slippage and potential losses. Additionally, stop on quote orders can be vulnerable to market manipulation, as large orders can trigger cascading effects and create artificial price movements.
  716

  358
• Salsabilah Isabel_33Jun 17, 2025 · a month ago
  Using stop on quote orders in the cryptocurrency market can provide a level of protection for traders. By setting a stop price, traders can limit their potential losses and minimize the impact of market fluctuations. This type of order can also be useful for locking in profits, as it automatically triggers a market order when the specified quote price is reached. However, it's important to note that stop on quote orders may not always execute at the desired price, especially during periods of high volatility. Traders should carefully consider the potential risks and benefits before utilizing this order type.
  615

  205
• Gundersen JohannessenJan 31, 2024 · a year ago
  Stop on quote orders are a popular choice among traders in the cryptocurrency market. They offer a convenient way to automate trading decisions and reduce the need for constant monitoring. When a stop on quote order is triggered, it can help traders take advantage of price movements and execute trades at favorable levels. However, it's crucial to set the stop price carefully, as an incorrect placement can result in unnecessary losses. Traders should also be aware of the potential for slippage and market manipulation, especially when using stop on quote orders during times of high volatility.
  598

  150