It’s easy to overlook certain trading features when trading due to the wide ranges of features on exchanges like OKEx. One of such features is the stop-limit order. Stop-limit orders, when implemented correctly, may make a huge impact. This is a tool that can be used by almost anyone.
Let us see how you can place a stop-limit order through the following examples:
Stop limit orders are a combination of limit orders and stop orders that are used in the crypto market.
Stop limit orders allow traders to pre-set the price a sell/buy order should be performed (stop order) plus the minimum/maximum price users want to sell/buy.
Why should you use stop limit orders?
Stop-limit orders allow you to take profit when the price of a token reaches your “take-profit” mark or to reduce your loss when the price reaches your “stop-limit” mark.
Let’s see how to place a stop-limit order in the following examples:
First Case (Close brief stop-limit):
To reduce the loss, you want to exit a sell order at a fair stop-loss level after entering it. A Bitcoin sell option with a standard value of $9,000 is opened by the trader. If the trader wants to place a stop-loss trade when the trade price increases to USD10,000 and stops it at $10,010, he must input 10010 and 10000 for the Order Price($) and Trigger Price($), respectively, and then click Open Short.
With the reverse, you may establish take-profit for sell orders and execute an Open Short order for less than $9,000.
Second Case (Close lengthy stop-limit):
A Bitcoin buy order with a standard value of $9,000 has been opened by the trader. If the trader wants to place a stop-loss order whenever the market price drops to $8,000 and stop the trade at $7,990, the user can do so. On the contrary, you could establish take-profit for long contracts by placing a Close Long trade at a value greater than $9,000.
When the Bitcoin market rate breaks beyond $19,250 and the trader think it will keep rising, he can create a long contract at $19,251.
If the Bitcoin market value drops beyond $19,250 and the trader feels it will steadily decline, he can create a short position at $19,249, which is less than the current price.
- The position will be performed at the listing price if the current value attains the trigger valuation. The order would not be performed if the current value does not meet the trigger value.
- The present position would be ended or another position would be launched if the order is performed. Your trading positions and margin will stay in the account if indeed the order is not completed.
- If the pre-determined order valuation aggravates the price limit standards when the order is prompted at the predetermined conditions, the platform will place an order at the peak or lowest of the threshold prices.
- Orders would not be prompted until positions and margins have been frozen. System difficulties, trading unavailability, insufficient margins, position limits, price constraints, and other factors may prevent stop-limit orders from being effectively executed. Stop-limit entries that have been prompted may or may not be completed; stop-limit orders that have not been performed will be displayed in the trade volume.
You can learn more about trading on OKEx by joining MyCryptoParadise. Use our discount PRO5% to get an exclusive 5% discount on your premium membership today! Join the MyCryptoParadise telegram channel through this link.