What is a stop order and how does it work on GDAX?

3 answers

• Dec 25, 2021 · 3 years ago
  A stop order is a type of order that is placed to buy or sell a cryptocurrency when its price reaches a certain level. On GDAX, a stop order can be used to limit losses or protect profits. For example, if you own Bitcoin and want to sell it if the price drops below a certain level, you can place a stop order with a stop price below the current market price. If the price reaches the stop price, the stop order will be triggered and your Bitcoin will be sold. This can be useful for minimizing losses or locking in profits in a volatile market.
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• Dec 25, 2021 · 3 years ago
  A stop order on GDAX works by setting a stop price and a limit price. The stop price is the price at which the stop order will be triggered, while the limit price is the minimum price at which the order will be executed. When the stop price is reached, the stop order becomes a market order and is executed at the best available price. It's important to note that stop orders do not guarantee execution at the stop price, especially in fast-moving markets where prices can change rapidly. GDAX also offers advanced order types like stop-limit orders, which allow you to set a limit price for your stop order to ensure that it is executed within a specific price range.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we understand the importance of stop orders for risk management in cryptocurrency trading. Stop orders can help traders protect their investments and minimize losses in volatile markets. GDAX provides a user-friendly interface for placing stop orders, making it easy for traders to set their desired stop price and limit price. It's always recommended to carefully consider your risk tolerance and set appropriate stop prices when using stop orders on GDAX or any other exchange.
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