We are excited to continue adding features for our trading community! Stop-limit orders are now included.
A stop-limit order is a conditional trade that combines the features of a stop-loss order and a limit order. Stop-limit orders are often used by traders to mitigate risk, lock in profits, and limit downside losses by specifying the highest or lowest price they are willing to accept.
What is a Stop-Limit Order?
A stop-limit order requires the setting of two price points, the stop price, and the limit price:
- Stop price: a trigger price to buy or sell
- Limit price: an order placed to buy or sell a when the price is reached
Example of a Buy Stop-Limit Order
For example, the price of BTC is now at $20,000. Your analysis tells you that once BTC crosses $22,000, it will enter a bullish trajectory and probably trend upward. You would then want to buy BTC at $22,500. Even though the price is lower now, you do not want to place an order until you are confirmed of the trend.
You then place a stop-limit order for when BTC reaches $22,000 (your stop price or trigger price) with a limit price of $22,500 (your limit order or buy price). The order might be filled with a price of $22,500 or lower; or if the trend upward happens too quickly, the order might not be filled completely.
Example of a Sell Stop-Limit Order
For example, the price of BTC is now at $20,000. You bought BTC when it was $18,000. Your analysis tells you that once BTC dips to $19,000, it will enter a bearish trajectory and probably trend downward. You want to sell the BTC you bought at $18,500. Even though the price is higher now, you do not want to place an order until you are confirmed of the trend because you might miss out on potential upside should the price bounce back higher.
You then place a stop-limit order for when BTC reaches $19,000 (your stop price or trigger price) and a limit price of $18,500 (your limit order or sell price). The order might be filled with a price of $18,500 or higher; or if the trend downward happens too quickly, the order might not be filled completely.
How to place a stop-limit order on XREX
Visit our brand new Trade page
1. Select Buy or Sell accordingly and select Stop Limit from the dropdown menu (other options include Limit and Market)
2. Fill in your Stop Price (trigger) and your Limit Price (buy/sell price) and the amount you would like to buy/sell. Select Buy or Sell once you are done.
3. Review order details and select Confirm
4. Your order has been successfully created. You will see it under the list of open orders.
We hope you have a great trading experience with our new trade interface and stop-limit order feature. Thank you for your support. Look for more exciting updates in the next few releases!