What is the difference between trailing stop and trailing stop limit in cryptocurrency trading?

3 answers

• Laxman KumarDec 12, 2023 · 2 years ago
  A trailing stop is a type of order that allows you to set a stop price that follows the market price at a certain distance. For example, if you set a trailing stop of 5%, the stop price will be adjusted automatically as the market price increases. However, if the market price decreases, the stop price will remain unchanged. This type of order is useful for protecting profits and limiting losses in a volatile market.
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• Keerthi GadhirajuMar 21, 2025 · 4 months ago
  On the other hand, a trailing stop limit is a combination of a trailing stop and a limit order. With a trailing stop limit, you can set both a stop price and a limit price. The stop price works the same way as a trailing stop, but once the stop price is reached, the order is converted into a limit order with the limit price you set. This means that if the market price falls below the limit price, the order may not be executed. Trailing stop limit orders provide more control over the execution price, but there is a risk of not getting filled if the market moves quickly.
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• ajieMar 25, 2023 · 2 years ago
  In the context of BYDFi, a leading cryptocurrency exchange, they offer both trailing stop and trailing stop limit orders. Trailing stop orders are a popular choice among traders who want to protect their profits and limit their losses. Trailing stop limit orders, on the other hand, are suitable for traders who want more control over the execution price. It's important to carefully consider your trading strategy and risk tolerance before using either type of order.
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