A stop-market order is a type of conditional order used in trading that combines features of both stop orders and market orders. It allows traders to set a specific price, known as the stop price, which triggers the execution of a market order once reached. This order type is particularly useful for managing risk and ensuring trades are executed quickly when market conditions change.
How Does a Stop-Market Order Work?
Here’s how it works:
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Trigger Mechanism
The stop price acts as a trigger. Once the market reaches this price, your order becomes a market order.
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Execution at Market Price
After activation, the order is filled at the current market price, which may differ from the stop price due to market fluctuations.
How to Place a Stop-Market Order
To place a stop-market order on Coins.ph, follow these steps:
1. Access the Spot Trade Page
Log into your Coins.ph account and navigate to the Spot Trade page.
2. Select Stop-Market Order
Click on the Stop-Limit Order tab.
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on the Coins website |
on the Coins app |
3. Set Your Stop Price
Choose the stop price that will trigger your market order.
4. Enter Order Details
- For buying: Input your Trigger Price and total amount, then click BUY.
- For selling: Enter your Trigger Price and amount, then click SELL.
Viewing Your Stop-Market Order History
On the Coins website
- For open orders, you can view them under the Open Order tab.
- To cancel an order, click the Cancel icon directly.
- For filled orders, you can check them under the Order History tab to view the Executed Price of each trade.
On the Coins app
Both Open Order and Order History are accessible at the upper-right section of the Spot Trade page.
Frequently Asked Questions
What happens if my stop price is reached but there’s no liquidity?
If there’s insufficient liquidity when your stop-market order is triggered, it may execute at a less favorable price than anticipated.
How can I ensure my trades execute at my desired price?
To have more control over execution prices, consider using stop-limit orders instead of stop-market orders.