Stop Order vs Limit Order vs Stop Limit Order

Posted On : 03 Aug 2020
Category : Blog

HotBTC is the best cryptocurrency exchange that allows its traders to visualize orders (open & close), trade volumes, positions, and price alerts, modify any order properties, and apply different trade strategies. In terms of opening or closing orders on HotBTC, there is a stop order limit which is basically a set of instructions for placing your trade orders within the predefined parameters. You can even automatically place an order on the exchange according to your pre-set price and amount as well. Once you have initiated a stop-limit order on the platform then HotBTC will automatically place your order in accordance with the actual balance present in your account or wallet.

On the other hand, a limit order does not work immediately after the previous order type, but it is completed within a specified price by a trader. Apart from stop limit and limit orders HotBTC also provides coin listing and market order facilities as well.

What is the stop-limit order?

A stop-limit order is a set of simple instructions specifically needed to place a trade order as per your predefined parameters. When the current crypto market price reaches the trigger price, and you can automatically place an order on the HotBTC cryptocurrency exchange according to your pre-set price and amount. Once after initiating a stop-limit order if there is a low balance in your account balance then the exchange will automatically place your order in accordance with the actual balance present in your account or wallet. However, if your account balance is much lower than the minimum trading limit then your order cannot be placed.

You can use a stop-limit order in terms of matching a specific market price which is needed to be matched accordingly. However, it may work as a limit order, but it is executed like a market order once that price is reached (as a rule of thumb, there are stops that use limits). The conventional stop orders are therefore subject to the same fees as that of market orders. After every condition is fulfilled, a stop-limit order turns into a limit order. Traders are benefited from stop-limit order because this type of order is more result-oriented due to a price guarantee in case if any digital asset is highly volatile. HotBTC has incorporated the stop-limit order in such a way so that you can use this order in tandem with a market order when a specific price is met accordingly.

What is an order limit or limit-order?

A limit order is as simple as a market order; the only difference is that a limit order can only be applied if there is a lower price than what you have decided to move ahead with. While applying this strategy you need to remember that you can either buy or sell the assets at a limited or higher price only. HotBTC suggests you can only opt for a limit order when you are executing a limit order as a part of the total amount which will be reversed to your account.
However, if the market price does not meet or match up with your desired price, the limit order will stay open. A limit order does benefit a trader like it can help you determine the latest market price. Although it is not always guaranteed that it can be executed, as it is totally dependent on the market price.

HotBTC is the best crypto trading platform providing you with coherent market data and orders that are matched into one system along with the same trade volumes only. In terms of market volume, HotBTC helps you manage risks and stay put in order to gather more in smaller proportions from your regular trades. Trading with the cryptocurrencies on HotBTC can open an exciting world of opportunities for you with higher growth and potentials helping you strategics your financial future as well.

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