Can you show me an example of a stop limit order being executed in the world of digital currencies?

Gorman WrennApr 18, 2022 · 3 years ago1 answers

I'm interested in learning more about stop limit orders in the world of digital currencies. Can you provide me with an example of how a stop limit order is executed? I want to understand the process and how it works in the context of digital currencies.

Digital Currencies

Stop Limit Order

Execution

1 answers

Apr 18, 2022 · 3 years ago
Sure thing! Here's an example of a stop limit order being executed in the world of digital currencies. Let's say you're trading Ethereum (ETH) and you want to sell it if the price drops to $3,000. You set a stop price of $3,000 and a limit price of $2,950. When the market price of Ethereum reaches or falls below $3,000, your order becomes active. If the market price then falls to or below $2,950, your order is executed and you sell Ethereum at that price. This allows you to protect your profits and limit your potential losses in a volatile market.