How to Use the Stop Limit Function
A stop-limit order will execute at a given price (the limit price) when the stop price becomes active.
Once the market price has hit the stop price, the stop-limit order becomes a limit order to buy or sell at the given limit price. This order type allows you to set good entry and exit points for your trades.
The key to stop-limit orders is wisely choosing the limit price and the stop price. In general, the stop price should be set below the limit price for buy orders. For sell orders, the stop price should be set above the limit price.
- Stop price. This is the price at which the limit order becomes active.
- Limit price. This is the price at which the order is added to the orderbook. The trade will be executed at the limit price.
- Quantity. The amount of cryptocurrency to be bought or sold at the limit price.
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