Stop Sell Order

1. Understanding Trailing limit sell, stop sell, and buy/sell limit order

2. Advanced traders always use different trading order types rather than just a basic buy and sell market order. Buy and sell orders at market price will usually ensure that your trade is occurring, but it may also include slippage. Slippage refers to between the expected price of a trade and a price at which trade is executed. It may occur anytime prevalent at the time of higher volatility when market orders are used. Market prices change quickly, allowing slippage to occur during a trade being occurred and when it’s completed. the difference but is most

3. Stop sell order A stop sell order is used while selling a crypto asset. This order type is much different than placing a limit order as it includes a stop price that triggers the allowance of market order. These orders have a specified stop price. In this order type, a trader has to specify a stop price to sell their order. If the crypto asset price moves to the stop price, then a market order is triggered to sell an asset. Different than limit orders, this order type involves some slippage since there will be a marginal discrepancy between stop price and the following market price execution. A stop sell order is usually used to limit losses and managing already accumulated profits. Let’s understand it with an example: Say, a trader has bought XYZ at $35 per coin but wishes to risk no more than $5 per share loss on this trade. He places a stop sell order just below $30, say at $29.50. If the market price falls to $29.50, then a sell stop order will be triggered, and XYZ stock is sold at the next available price.

4. Trailing stop limit order A trailing stop limit order allows a trader to specify a limit on the maximum possible loss, with setting a limit on the maximum possible gain. A trailing limit sell order moves with the market price and recalculates the stop trigger price at a fixed point below the market price based on the user- defined trailing amount. As the market rises, both the stop price and limit price rises by the trail amount and limit offset, but if the market falls, the stop price remains unchanged. And, when the stop price is hit, the limit order is submitted at the last calculated price. Similarly, a buy trailing stop limit order is the mirror image of Trailing limit sell order.

5. Buy/sell limit order Both buy and sell limit orders allow traders to specify their own price rather than taking the market price at the time order is executed. Using a limit order for buy allows a crypto trader to specify the exact price they want to buy the crypto coins at. Usually, it is a calculated entry point. A limit order allows you to specify the maximum or desired price at which you want to buy an asset and the minimum price at which you want to sell. Sell limit order help traders to limit their downside risks while buying or selling their stocks.

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