When trading digital currencies, what distinguishes the stop price from the limit price?

6 answers

• Jan 14, 2022 · 3 years ago
  The stop price and the limit price are two important concepts in digital currency trading. The stop price is the price at which a stop order becomes a market order, while the limit price is the price at which a limit order becomes executable. When the stop price is reached, the stop order is triggered and becomes a market order, which means it will be executed at the best available price in the market. On the other hand, when the limit price is reached, the limit order is triggered and becomes executable, but it will only be executed at the specified limit price or better. In summary, the stop price determines when a stop order becomes a market order, while the limit price determines when a limit order becomes executable.
  731366
• Jan 14, 2022 · 3 years ago
  Stop price and limit price are terms you'll often come across when trading digital currencies. The stop price is the price at which you want to trigger a market order, while the limit price is the price at which you want to trigger a limit order. Let's say you want to buy a digital currency, and you set a stop price at $10. Once the market price reaches $10, your stop order will be triggered and executed at the best available price. On the other hand, if you set a limit price at $10, your limit order will only be executed if the price reaches $10 or better. So, the main difference is that a stop order becomes a market order when the stop price is reached, while a limit order becomes executable when the limit price is reached.
  735245
• Jan 14, 2022 · 3 years ago
  When it comes to trading digital currencies, understanding the difference between the stop price and the limit price is crucial. The stop price is the price at which you want to trigger a market order, while the limit price is the price at which you want to trigger a limit order. Let's take an example. If you set a stop price at $10 and a limit price at $12 for a digital currency, it means that when the market price reaches $10, your stop order will be triggered and executed at the best available price. On the other hand, if the market price reaches $12, your limit order will be triggered and executed at $12 or better. It's important to note that the stop price is used to protect against losses and trigger a quick market order, while the limit price is used to ensure a specific price is met before executing the order.
  829208
• Jan 14, 2022 · 3 years ago
  In digital currency trading, the stop price and the limit price serve different purposes. The stop price is the price at which a stop order is triggered and becomes a market order, while the limit price is the price at which a limit order becomes executable. Let's say you want to sell a digital currency and you set a stop price at $100. Once the market price reaches $100, your stop order will be triggered and executed at the best available price. On the other hand, if you set a limit price at $100, your limit order will only be executed if the price reaches $100 or better. The stop price is often used to limit losses and protect against market volatility, while the limit price is used to ensure a specific price is met before executing the order.
  755151
• Jan 14, 2022 · 3 years ago
  When it comes to trading digital currencies, understanding the difference between the stop price and the limit price is essential. The stop price is the price at which a stop order is triggered and becomes a market order, while the limit price is the price at which a limit order becomes executable. Let's say you want to buy a digital currency and you set a stop price at $100. Once the market price reaches $100, your stop order will be triggered and executed at the best available price. On the other hand, if you set a limit price at $100, your limit order will only be executed if the price reaches $100 or better. The stop price is often used to protect against losses and trigger a quick market order, while the limit price is used to ensure a specific price is met before executing the order.
  800134
• Jan 14, 2022 · 3 years ago
  The stop price and the limit price are two terms you need to understand when trading digital currencies. The stop price is the price at which a stop order becomes a market order, while the limit price is the price at which a limit order becomes executable. Let's say you want to sell a digital currency and you set a stop price at $50. Once the market price reaches $50, your stop order will be triggered and executed at the best available price. On the other hand, if you set a limit price at $50, your limit order will only be executed if the price reaches $50 or better. The stop price is often used to protect against losses and trigger a quick market order, while the limit price is used to ensure a specific price is met before executing the order.
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