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What is a Stop-Limit order and how to use it properly according to volatility?

Don't let volatility take you out of the game!

Learn to use Stop-Limit orders like a pro:

How does it work?

1. Stop: the price where the order is activated

2. Limit: the price at which it is executed (if there is liquidity)

Example:

BTC at $95,000

You set: Stop $93,500 / Limit $93,000

This way you protect your position if it drops.

How to adjust it?

If the market is very volatile: leave more space between Stop and Limit

If the market is calm: use a small margin

EXTRA TIP:

Use an indicator like the ATR to see how much the price moves and not set the Stop too close.