What are the advantages and disadvantages of using limit orders versus stop limit orders on Robinhood for buying and selling cryptocurrencies?

1 answers

• Dec 26, 2021 · 3 years ago
  As an expert in the field, I can tell you that using limit orders and stop limit orders on Robinhood for buying and selling cryptocurrencies has its pros and cons. Limit orders allow you to set a specific price at which you want to buy or sell a cryptocurrency. This gives you more control over your trades and can help you get the price you want. However, if the price never reaches your specified price, your order may not be executed. On the other hand, stop limit orders can help you limit your losses and protect your profits. When the stop price is reached, your order becomes a limit order and will only be executed at the limit price or better. This can be useful in volatile markets. However, there is a risk that your order may not be executed if the price moves quickly. It's important to carefully consider your trading strategy and risk tolerance before choosing between limit orders and stop limit orders on Robinhood.
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