A stop-limit order will be executed after a specified (or better) price has been reached. Once reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.
- Term Definitions:
- Stop price: When the current price reaches the given stop price, the stop-limit order is executed to buy or sell at the limit price or better.
- Limit price: The selected or better price that the stop-limit order is executed at.
- Quantity: The quantity of tokens users wish to buy or sell in the stop-limit order.
Please note: A maximum of 2 stop-limit orders are allowed for each trading pair at any point in time.
- To show an Example:
The last traded price of Hcash (HSR) is 0.000123 BTC, and the resistance is around 0.000127 BTC. If you think the price will go higher after it reaches the resistance, you can put a Stop-Limit order to automatically buy more HSR at the price of 0.000128 BTC. This way you won’t have to continuously watch market movements until the price increases.
An example of someone taking advantage of this situation could be to: Select ‘Stop-Limit’ order, specify the stop price to be 0.000128BTC and the limit price to be 0.000130BTC, with quantity as 20. Then click the button ‘Buy Hcash’ to submit the order.