Which type of order, stop on quote or stop limit on quote, is more commonly used by cryptocurrency traders?

3 answers

• Jan 14, 2022 · 3 years ago
  Stop on quote orders are more commonly used by cryptocurrency traders. This type of order allows traders to execute a market order once the price reaches a specific level. It provides a quick and convenient way to enter or exit a trade, especially in volatile markets. However, stop on quote orders may be subject to slippage, where the execution price differs from the expected price due to market fluctuations. Traders should carefully consider the potential risks and set appropriate stop loss levels to manage their risk exposure.
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• Jan 14, 2022 · 3 years ago
  Stop limit on quote orders are also commonly used by cryptocurrency traders. This type of order combines the features of stop orders and limit orders. It allows traders to set a stop price and a limit price, specifying the price range within which they are willing to buy or sell. Stop limit on quote orders provide more control over the execution price and reduce the risk of slippage. However, there is a possibility that the order may not be filled if the market price does not reach the limit price. Traders should carefully consider the market conditions and set appropriate stop and limit prices to maximize their trading strategy.
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• Jan 14, 2022 · 3 years ago
  From my experience at BYDFi, I've noticed that both stop on quote and stop limit on quote orders are commonly used by cryptocurrency traders. The choice between the two depends on the trader's preference, trading strategy, and risk tolerance. Some traders prefer the simplicity and speed of stop on quote orders, while others prefer the control and precision of stop limit on quote orders. It's important for traders to understand the advantages and disadvantages of each type of order and choose the one that aligns with their trading goals and risk management approach.
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