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

3 answers

• Kent LambAug 11, 2020 · 5 years ago
  Stop price and stop limit are two important concepts in cryptocurrency trading. Stop price refers to the price at which a trader wants to trigger a market order. When the stop price is reached, a market order is executed. On the other hand, stop limit refers to the price at which a trader wants to trigger a limit order. When the stop limit is reached, a limit order is placed, but it may not be executed immediately if the market conditions are not favorable. The key difference between stop price and stop limit is that stop price triggers a market order, while stop limit triggers a limit order. Traders use stop price when they want to buy or sell at the best available price, while stop limit allows traders to set a specific price at which they want to buy or sell, even if it means waiting for the market to reach that price.
  833

  417
• Mahamcoul jr officiel CoulibalMay 03, 2021 · 4 years ago
  Alright, let me break it down for you. Stop price is the price at which you want to trigger a market order. It's like saying 'Hey, if the price reaches this level, I want to buy/sell right away, no matter what.' On the other hand, stop limit is a bit more specific. It's the price at which you want to trigger a limit order. With a limit order, you're saying 'Hey, if the price reaches this level, I want to buy/sell, but only if I can get it at this specific price or better.' So, stop price is more about getting in or out of the market quickly, while stop limit gives you more control over the price you want to execute your order at.
  637

  213
• Ka FongMar 10, 2025 · 3 months ago
  When it comes to stop price and stop limit, BYDFi has a great feature that allows traders to set both types of orders. With stop price, traders can ensure that they enter or exit a position at the best available price. On the other hand, stop limit gives traders more control over the execution price, allowing them to set a specific price at which they want to buy or sell. This can be useful in volatile markets where prices can fluctuate rapidly. Overall, understanding the difference between stop price and stop limit is crucial for traders to effectively manage their positions and execute their trading strategies.
  620

  155