#常见交易错误

Real Experience Sharing: A Lesson from a Stop-Loss Limit Order

Background: In 2024, I was trading a cryptocurrency (ETH), entering a long position at $1,800 and setting a stop-loss limit order with a trigger price of $1,750 and a limit price of $1,740.

Incident: One early morning, negative U.S. inflation data was released, causing the market to flash crash, and ETH suddenly fell below $1,700. My stop-loss limit order did not execute (because the lowest pending order price was $1,740), and I only discovered in the early morning that the price had dropped to $1,500, resulting in a much larger loss than originally expected.

Lesson Learned:

In markets with low liquidity or high volatility, the risk of a stop-loss limit order is higher than that of a stop-loss market order.

Afterwards, I now directly use stop-loss market orders on high-volatility assets to ensure risk control execution.