Today we are happy to announce a release of another cool feature prepared by Bitsgap team. We have received many suggestions and feedback from our users and one of them was Stop Limit order that works on all cryptocurrency exchanges we support. We took our time to develop and prepare a unified and stable solution when it comes to stop limit order, and now we are happy to share it with you!
What is Stop Limit
Basically, a stop limit order is a conditional trade which happens when a certain price is reached. This order combines the features of stop with a limit order. A stop limit order will be always executed at a specified price or better, only after the price condition is reached. As soon as the best bid or ask (depends on the side of the trade) is reached, a stop limit order will become a limit order.
When you configure a stop limit order on Bitsgap we ask you to specify two different prices:
- Stop: The target price at which we initiate the limit order placement.
- Limit: The target price used to sell or buy cryptocurrency.
There are some situations when you are unsure if the price of the cryptocurrency will go up or down, but you really want to join the run when one happens. With stop limit to buy you can postpone your purchase order when the price will go higher and broke the key resistance level. This strategy is perfect for overnight trading or if you don't want to risk with long position while market in downtrend or flat.
There is also a situation when you want to sell your crypto if the price go down and breaks the current support level. This can be done if you want to short your coin in possible downtrend or use it as a stop loss feature for coins you own. This is very useful if you feel that the price has potential to reverse from uptrend and you want to exit the deal as soon as it happens.
It is worth mentioning that when you use Stop Limit order on Bitsgap it won't be displayed on your origin exchange. We are using unified solution for Stop Loss order for exchange where this feature does not present, that's why it won't appear in the order book and your open orders before the stop triggered.
We hope this new feature will bring more smart decisions for your daily trading! Thank you for staying with us and using Bitsgap!