In the dynamic world of cryptocurrency trading, every second counts. A Stop-Limit order is a powerful tool to protect your profits and control your losses.
How does a Stop-Limit order work?
Consists of two key prices:
Stop Price: when the market reaches this value, your order is activated.
Limit Price: the price at which you want to buy or sell once the order has been activated.
Practical example:
Suppose BTC is trading at $65,000 and you want to protect your profits:
Set a Stop at $63,000
Set a Limit at $62,800
If the price drops to $63,000, your limit sell order is activated at $62,800.
Why use it?
Protects your investment against sudden drops
Executes sales automatically without emotions
Controls your strategy without monitoring the market 24/7
What you need to know
A poorly configured order can leave you out of the market or never execute. Learn first, trade later.
Changpeng Zhao, founder of Binance.
Key advantages
Reduces the risk of unexpected losses
Optimizes your exit strategy
Professionalizes your trading approach
Do you already use Stop-Limit orders or do you still trade blindly?
