What are the differences between stop on quote and stop limit on quote in the context of cryptocurrency trading?

5 answers

• Randa LamaliuJul 27, 2021 · 4 years ago
  Stop on quote and stop limit on quote are two different order types used in cryptocurrency trading. Stop on quote is an order that is triggered when the market price reaches or crosses a specified trigger price. Once triggered, the order becomes a market order and is executed at the best available price. On the other hand, stop limit on quote is an order that is triggered when the market price reaches or crosses a specified trigger price, but it is executed as a limit order with a specified limit price. Stop on quote orders are commonly used to limit losses or protect profits. They are useful when you want to automatically sell a cryptocurrency if its price drops to a certain level. However, since stop on quote orders become market orders, they may be executed at a price that is different from the trigger price, especially during periods of high volatility. Stop limit on quote orders, on the other hand, provide more control over the execution price. By setting a limit price, you can ensure that your order is executed at a specific price or better. However, there is a risk that the order may not be filled if the market price moves rapidly and surpasses your limit price before the order is executed. In summary, stop on quote orders are triggered as market orders and may be executed at a different price, while stop limit on quote orders are triggered as limit orders with a specified limit price.
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• Pappu singhNov 09, 2021 · 4 years ago
  Stop on quote and stop limit on quote are two different order types used in cryptocurrency trading. Stop on quote orders are triggered when the market price reaches or crosses a specified trigger price, and they are executed as market orders. This means that once the trigger price is reached, the order is executed at the best available price. Stop on quote orders are commonly used to limit losses or protect profits by automatically selling a cryptocurrency when its price drops to a certain level. On the other hand, stop limit on quote orders are also triggered when the market price reaches or crosses a specified trigger price, but they are executed as limit orders with a specified limit price. This provides more control over the execution price, as the order will only be executed at the specified limit price or better. However, there is a risk that the order may not be filled if the market price moves rapidly and surpasses the limit price before the order is executed. Both order types have their advantages and disadvantages. Stop on quote orders offer quick execution but may be executed at a different price, while stop limit on quote orders provide more control over the execution price but may not be filled if the market price moves rapidly.
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• SUU VUNov 03, 2020 · 5 years ago
  Stop on quote and stop limit on quote are two different order types used in cryptocurrency trading. Stop on quote orders are triggered when the market price reaches or crosses a specified trigger price, and they are executed as market orders. This means that once the trigger price is reached, the order is executed at the best available price. Stop on quote orders are commonly used to limit losses or protect profits by automatically selling a cryptocurrency when its price drops to a certain level. Stop limit on quote orders, on the other hand, are triggered when the market price reaches or crosses a specified trigger price, but they are executed as limit orders with a specified limit price. This provides more control over the execution price, as the order will only be executed at the specified limit price or better. In the context of cryptocurrency trading, stop on quote and stop limit on quote orders can be useful tools for managing risk and protecting investments. However, it is important to carefully consider the advantages and disadvantages of each order type and to use them in conjunction with other risk management strategies.
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• psyclobeMay 20, 2022 · 3 years ago
  Stop on quote and stop limit on quote are two different order types used in cryptocurrency trading. Stop on quote orders are triggered when the market price reaches or crosses a specified trigger price, and they are executed as market orders. This means that once the trigger price is reached, the order is executed at the best available price. Stop on quote orders are commonly used to limit losses or protect profits by automatically selling a cryptocurrency when its price drops to a certain level. Stop limit on quote orders, on the other hand, are triggered when the market price reaches or crosses a specified trigger price, but they are executed as limit orders with a specified limit price. This provides more control over the execution price, as the order will only be executed at the specified limit price or better. Both order types have their advantages and disadvantages. Stop on quote orders offer quick execution but may be executed at a different price, while stop limit on quote orders provide more control over the execution price but may not be filled if the market price moves rapidly. In the context of cryptocurrency trading, it is important to understand the differences between these order types and to choose the one that best suits your trading strategy and risk tolerance.
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• cataOct 01, 2022 · 3 years ago
  Stop on quote and stop limit on quote are two different order types used in cryptocurrency trading. Stop on quote orders are triggered when the market price reaches or crosses a specified trigger price, and they are executed as market orders. This means that once the trigger price is reached, the order is executed at the best available price. Stop on quote orders are commonly used to limit losses or protect profits by automatically selling a cryptocurrency when its price drops to a certain level. Stop limit on quote orders, on the other hand, are triggered when the market price reaches or crosses a specified trigger price, but they are executed as limit orders with a specified limit price. This provides more control over the execution price, as the order will only be executed at the specified limit price or better. When using stop on quote or stop limit on quote orders in cryptocurrency trading, it is important to consider the volatility of the market and the potential impact on the execution of your orders. It is also recommended to set appropriate trigger and limit prices based on your risk tolerance and trading strategy.
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