🎯 Stop-Limit Order vs Stop-Market Order — What’s the Difference?
Have you ever executed a trade and wondered why your order didn’t get triggered as you expected?
Let’s analyze Stop-Limit and Stop-Market orders 👇
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🔵 Stop-Market Order
➡️ When your stop price is hit, your order becomes a market order
➡️ It will be executed immediately at the best available price
Example:
You set a stop order at $29,000 for BTC
When the price hits $29,000 → Binance will sell your BTC immediately
✅ Fast execution
❌ May receive a worse price during high volatility
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🔷 Stop-Limit Order
➡️ When your stop price is hit, it will become a limit order
➡️ It will only be executed at your limit price or better
Example:
Stop = $29,000 | Limit = $28,800
→ The order is triggered at $29K but will only be executed if the price reaches $28.8K or better
✅ Better price control
❌ May not be filled if the price drops too quickly
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🧠 Summary:
Use Stop-Market Orders when execution speed is important
Use Stop-Limit Orders when price accuracy is more important
Trade smart. Control your entry points. Protect your exit points. 🎯