Stop-Market Order
A Stop-Market order is an order that buys or sells a cryptocurrency at the market price as soon as it reaches the trigger level. The general purpose of a Stop order is the opposite of a Limit order, where instead of buying or selling cryptocurrency at a specific price, it will be filled at the best price available when triggered.
Create Stop-Market order
The Stop order is available only for spot trading and it can be accessed on the Trading page. To create a Stop-Market order, head to the trading widget and select the Stop tab.
Now enter the order's parameters:
- Select a side - Buy or Sell. Please note that the Buy price should be above the current price and vice versa; the Sell price should be below the current price.
- Enter the trigger price in the Price field.
- Enter the amount of the base currency to buy or sell in the Amount field.
- Alternatively, you can enter the Total amount of the quote currency that should be spent for the buy order or received from the sell order.
- Optional: Activate any extra features - Take Profit, Trailing Take Profit, Stop Loss, Trailing, or OCO.
- When you are ready, click on the [Buy/Sell ...] button to create your Stop-Market order.
View and manage your open Stop orders
Once you place a Stop-Market order, it will be converted to a "Stop" type in the Open Orders tab. You can modify Stop Loss (SL) and Take Profit (TP) levels anytime enabled during the order placement process. To do so, click on the pencil icon.
Enable, disable, or adjust TP and/or SL. Once all the changes have been made, press the [Save] button.
Situations when Stop-Market orders can be used
There are no limitations to the usability of any service, anything can be used differently based on personal strategies and choices. However, we highlight the two most important use cases where the Stop-Market order can come in handy.
Resistance breakout
When the price makes a resistance breakout, it usually brings more volume to the market, which will push the price even higher. Your Stop-Market Buy order will guarantee to enter the trade as soon as the key resistance is crossed.
Support breakout & Eliminating slippage
Another use case for the Stop-Market order is to do the opposite on the support breakout when it is necessary to leave the market to prevent further losses. The main difference here between the Stop-Limit and the Stop-Market is that the Stop-Market order will ignore the slippage that may occur in the order book and will guarantee that your coins will be sold at the best price possible.
The difference between a Limit order and a Stop order
There are two main differences between Limit and Stop orders:
- A Limit order is visible for the market participants and can be only filled at a specific price or better.
- Unlike a Limit order, a Stop order isn't visible in the order book and will be executed at a market price after a trigger price has been reached.
A Limit order is an order used to buy or sell a coin at a specific price. However, you cannot set a limit order to buy a coin above the market price because a better price is already available.
A Stop order will turn into a market order once your stop price is met or exceeded. A Stop order can be set above the current market price.
Trailing for Stop-Market Order
The Stop-Market order has an extra Trailing option that will follow the price and move your open order accordingly. This option is helpful in situations when you want to shift your open Stop-Market order if the price is moved by a certain percentage. It will allow you to set the stop-market order and leave the automation to do the rest with no need to move your order manually.
To enable the Trailing feature, toggle the "Trailing" option while configuring your Stop-Market order.
After, when the Trailing option is enabled, enter the Price step percentage (%) to define at what distance from the current price Trailing should move the order.
Control the price step when Trailing moves the order
Trailing will move the order when the price changes by a set percentage in the price step. You can set up the Price step as a minimum of 0.2%. Here is a step-by-step example of how this feature will work in real trading:
- BTC price is 45k, you want to place a Stop order to buy the coin at 47k with a Price step of 5%.
- As soon as the price drops by 5% i.e. to 42.75k, your Stop order will be moved to 44.65k (by 5%).
- If the price continues to go down, the order will be moved when the price deviation will be 5% again.
As you can see, the Trailing triggers every 5% and move the open order by 5% down or up from the previous position.
Tip
If you do not want to miss a single move, then you can set it up to a minimum of 0.2% and this setting will increase the frequency when the trailing should move the order.
Situations when Trailing can be used
There are two trading situations when you can consider using the trailing for your Stop-Market order: Buy the Dip and Sell the Tip. Both provide an advantage when opening and closing the trade.
Buy the Dip
Adding Trailing to your Stop-Market buy order can give you an advantage of a better entry price. Trailing will follow the price down and move the open order until the price reverses and hits it. This way, you can enter the trade at the best price possible, which will provide better results in comparison to an earlier uncertain entry.
Sell the Tip
Another possible use for Trailing is adding it to your Stop-Market sell order which will exit the trade at the best possible price by following the price upwards. This feature is also known as moving trailing stop. In this case, Trailing will follow the price up and move the open order until the price reverses and hits it. This way, you can sell your coins at the top and avoid moving your Stop orders manually.
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