Stop order

A stop order is an order to buy or sell an asset when its price moves past a particular point. This order uses the stop price as a trigger so that when the stop price is reached, your order is sent to the exchange as a market order.

This order can help you limit your losses or lock in a profit. Using stop orders helps protect traders' profits, limit losses, and initiate new positions.

• Buy stop order — these are used to limit losses and are always placed above the current market price and filled only if the market rises.
  
  

• Sell stop order — these are used to limit losses and are always placed below the current market price and filled only if the market falls.

However, because the crypto-markets have extreme movements, it may cause your stop order not to be fulfilled during a sharp price drop (or rise). Also, the executed price of the market order may be lower or higher than the last trade price.

Placing a stop price is usually used by traders entering situations where they are unable to monitor their operations for extended periods of time, or trading in volatile assets.



NOTE: Before making the decision to buy, sell, or hold any digital asset, you should conduct your own due diligence and consult your financial advisors prior to making any investment decision.

AlteumX does not provide any investment advice or advice on trading techniques, models, algorithms, or any other schemes. No communication or information provided to you by Alteumx is intended as or shall be considered or construed as, investment advice, financial advice, trading advice, or any other sort of advice

- AlteumX Team