A Stop-Limit order is a limit order that has a limit price and a stop price. When the market price reaches your stop price, the limit order will be placed on the order book with the limit price you set. Once the limit price is reached, the limit order will be executed.
How Stop-Limit orders work
Stop price
- This is the price that triggers the execution of your Stop-Limit order.
- Once the market price hits this level, the limit order is activated.
Limit price
- The target price (or better) at which the order should be executed
- Once activated, the order behaves like a standard limit order
Example
Although the stop price and limit price can be the same, this is not a requirement.
- For sell orders: Set the stop price slightly higher than the limit price
- For buy orders: Set the stop price slightly lower than the limit price
This approach increases the chances of your limit order getting filled after the stop price is reached.
Current price: 12.80
You can set:
- Stop price above current price: 13.00
- Stop price below current price: 12.00
Once the price reaches either 13.00 or 12.00, the Stop-Limit order will be triggered, and the limit order will be automatically placed on the order book.
Important Considerations
- If you set the limit price too high or too low, your order may never be filled because the market price cannot reach the limit price you set.
- In addition, when the market liquidity is insufficient, even though the market price reached your limit price, your order may not be 100% filled.
How to place a Stop-Limit order?
1. On the Spot Trade page, select the Stop-Limit order tab.
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On the Coins website |
On the Coins app |
2. Before placing a Stop-Limit order, you need to choose the stop price that triggers the limit order.
3. Then set your limit price, and the amount of crypto you wish to trade.
4. Click Buy or Sell to place your Stop-Limit order.
How to view my Stop-Limit order history?
- For filled orders, you can check them under the Order History tab to view the Executed Price of each trade.
- For open orders, you can view them under the Open Order tab.
- To cancel an order, click the Cancel icon directly.
Frequently Asked Questions
What's the difference between stop price and limit price?
The stop price triggers your order, while the limit price is the actual price at which you're willing to execute the trade.
Why might my stop-limit order not execute?
Common reasons include:
- Market price moving too quickly past your limit price
- Insufficient market liquidity
- Limit price set too far from market price
Is there a risk of partial fills with stop-limit orders?
Yes, your order may fill partially if there isn't enough market liquidity at your limit price.