How do stop market and stop limit orders work in the context of digital currencies?

1 answers

• Dec 16, 2021 · 3 years ago
  Stop market and stop limit orders are commonly used in trading digital currencies. A stop market order is an order to buy or sell a digital currency at the current market price once the price reaches a specified stop price. This type of order is often used to limit losses or protect profits. On the other hand, a stop limit order is an order to buy or sell a digital currency at a specified limit price or better after the price reaches a specified stop price. This type of order provides more control over the execution price, but there is a risk that the order may not be filled if the price does not reach the limit price. It's important to understand the differences between these two types of orders and consider your trading strategy before using them in the context of digital currencies.
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