Spot market trading can be automated using stop orders. But how to choose between the two main types?
Market Stop Order: triggers when the target price is reached → executed immediately at the market price. Guaranteed deal, but slippage may occur during rapid fluctuations.
Limit Stop Order: triggers when the target price is reached → waits until the specified execution price you provided appears. More control over the price, but no guarantee of execution if the market does not reach the limit price.
When to use what:
Market: when it's important for you to guarantee an exit/entry, even if the price is slightly worse.
Limit: when the price target is more important than the speed of execution (especially in volatile/illiquid markets)
Both types are placed in 3 steps: enter the spot trading interface → select the stop order type → enter the stop price, limit price ( if limit ) and volume.
Main recommendation: before installation — analyze support/resistance levels and market conditions. Slippage is inevitable during gaps and flashes, so favor more conservative levels.
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Stop orders for crypto: which ones to choose?
Spot market trading can be automated using stop orders. But how to choose between the two main types?
Market Stop Order: triggers when the target price is reached → executed immediately at the market price. Guaranteed deal, but slippage may occur during rapid fluctuations.
Limit Stop Order: triggers when the target price is reached → waits until the specified execution price you provided appears. More control over the price, but no guarantee of execution if the market does not reach the limit price.
When to use what:
Both types are placed in 3 steps: enter the spot trading interface → select the stop order type → enter the stop price, limit price ( if limit ) and volume.
Main recommendation: before installation — analyze support/resistance levels and market conditions. Slippage is inevitable during gaps and flashes, so favor more conservative levels.