What is a Stop-Limit Order?

A stop-limit order is one of three types of orders that users can find on Tokocrypto. However, before the user goes deeper with this type, we recommend that you first learn about limit orders and the market.

In order to best understand what a stop-limit order is, we will first break it down into a stop price and a limit price. The stop price is the price that triggered a limit order, and the limit price is the price of the limit order that was triggered. This means, when the user's stop price is met, the user's limit order will be placed directly in the order book.

Although the stop and limit prices can be the same, this is not a requirement. In fact, it is safer for you to set the stop price (trigger price) slightly higher than the limit price (for sell orders) or slightly lower than the limit price (for buy orders). This increases the chance for a user's limit order to be fulfilled once the stop-limit is triggered.

How to use?

When the user has just bought 0.078 BNB at 401816 BIDR it is because the user believes that the price is close to the support limit and will rise from it.

 

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In this situation, the user wants to place a stop-limit sell order to eliminate losses if the user's assumption is wrong, and the price falls. To do this, log into your Tokocrypto account and head over to the BNB/BIDR market. Then click on the Stop-Limit label and enter the stop and limit prices, along with the amount of BNB you wish to sell.
 
If the user believes that 401816 BIDR is a reliable support position, you can place a stop-limit order slightly below this price (in case the price falls). In this example, we will place a stop-limit order for 0.078 BNB with a stop price at 401616 BIDR and a limit price at 401416 BIDR.

 

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When the user clicks the Sell BNB button, a confirmation window will appear. Make sure everything is correct then click the "Confirm" button to confirm.

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User can scroll down to view and manage open user orders

 

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Please note that a stop-limit order will only be placed when the price is met, and a limit order will be filled when the market price reaches your limit price. If your limit order is triggered (by the stop price), but the market price doesn't reach the price the user placed, the limit order will remain open.
 
Sometimes the user is in a situation where the price falls very quickly, and the user wants the user's stop-limit order to be exceeded without being fulfilled. In this case, you can immediately go to a market order to quickly exit the transaction.
 

When should the user use it?

Stop limit orders are very useful as a risk management tool, and users should use them to avoid significant losses. This tool is also very useful for creating sell orders to ensure that the user is taking profit when your target transaction is reached. The user can also use a stop-limit buy order to buy an asset after a resistance position has been crossed during an increase.

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