What is a stop order on Coinbase and how does it work?

3 answers

• Aparna AppuApr 10, 2022 · 3 years ago
  A stop order on Coinbase is a type of order that allows you to set a specific price at which you want to buy or sell a cryptocurrency. When the market price reaches or surpasses the stop price you set, the order is triggered and executed. This type of order is useful for limiting potential losses or capturing profits. For example, if you own Bitcoin and want to sell it if the price drops below a certain level, you can set a stop order with a stop price below the current market price. If the market price reaches or goes below the stop price, your order will be triggered and executed, helping you to minimize losses.
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• FacuJan 14, 2023 · 2 years ago
  A stop order on Coinbase is like an automated trade that is triggered when the market price of a cryptocurrency reaches a specific level. It can be used to protect your investment by limiting potential losses or to capture profits. For example, if you believe that the price of Ethereum will increase, you can set a stop order to buy Ethereum at a specific price above the current market price. If the market price reaches or goes above the stop price, your order will be triggered and executed, allowing you to enter the market at a favorable price.
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• terrfif1edMar 05, 2024 · a year ago
  A stop order on Coinbase works by allowing you to set a specific price at which you want to buy or sell a cryptocurrency. When the market price reaches or surpasses the stop price, your order is triggered and executed. This type of order is commonly used to limit potential losses or to capture profits. For example, if you own Litecoin and want to sell it if the price drops below a certain level, you can set a stop order with a stop price below the current market price. If the market price reaches or goes below the stop price, your order will be triggered and executed automatically.
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