How to use the stop limit function.

What's the stop limit order?

The stop limit order is a market price order with both stop and limit prices. When the stop price is reached, a designated price order will be issued. The limit price is the specific price of the designated order in which the stop price is triggered.

When the stop price is reached, the designated price order will be submitted to the orderbook immediately.

Stop and limit prices may be the same. However, for selling orders, it is recommended to set the stop price (initiated price) slightly higher than the limit price. The price difference secures a safe asking price difference between the time the order is issued and the time it is signed.

For purchase orders, set the stop price slightly below the limit price. This reduces the risk of not signing orders.

Stop limit terminology and how it works.

Stop Price: When the price of the asset reaches the stop price, a stop limit order is executed to purchase or sell the asset above the specified limit price.

Limit Price: The selected (or potentially better) price at which the stop limit order is executed.

Quantity: The quantity of assets to be purchased or sold on a stop limit order.

Example of operation.

The last transaction price of BTC is 39900 USDT, and you think there is resistance near 40000 USDT.

If you think the price rises further when the price reaches the resistance level, you can automatically purchase more BTCs at 40200 USDT prices by placing a stop limit order. In this way, you don't have to wait until the price reaches the target price and keep watching the market movement.

How to create a stop limit order

Let's take an accurate look at how to place a stop limit order through the example above.

1. You can start the order by selecting Conditional Order on the order book.

2. Please provide details on the stop action (initiation price), the order price at which the designated price order is issued, and the amount of digital assets you want to purchase.

3. Lastly, please carefully check the stop limit order before submitting it to the exchange by clicking Long Open/Short Open.