When the market price trigger the price, the Stop-limit Order automatically executes a limit order with the specific price which is set in Stop-limit Order.
Therefore, it can help users to keep the profits or reduce losses.
Explanation of Terms
Trigger Price：When the "latest price" reaches the "Trigger Price" set by the user, the stop-limit order will be triggered and the order will be issued.
Limit Price：After the Stop-limit Order has been triggered, the order will be placed at the limit price.
Amount：The amount of the order issued after it has been triggered.
*Once Trigger Price has been triggered, the Limit Order will be immediately placed on the Order Book.
*Stop-Limit Order is not guaranteed to fill.
*System will freeze the asset and ensure that there is enough money to place the order when the trigger condition is reached.
Example
Stop-limit Order to sell
If the current ETH market price is 5,800, User A expects ETH to fall to 5,600, which is the lowest price he can accept, and thinks that it is the time to place the order. when ETH price is less than 5,700.
Approach
- User A wants to sell 10 ETH at a price of 1 ETH 5,600.
- Set the "Trigger Price" to 5,700, the "Limit Price" to 5,600, and the "Amount" to 10. The order field will prompt "Total Amount" is 56,000, press the "Sell" button.
- The bounce window will show the condition just mentioned is ≤ 5,700. Please confirm whether it meets the expected direction.
- Press the “Confirm” button to set up the order. If the ETH’s market price reaches the price, that set by User A, the system will automatically set up a Limit Order with ETH 5,600 and 10 quantities.
- If the system sets up a Limit Order, it will start to trade 10 ETHs as much as possible between ETH 5,700 and ETH 5,600. If 10 ETHs are not filled, an ETH 5,600 will be hanged in the pending order. The remaining amount after the combination.
- If the market does not match the price set by User A → the order keeps Open.
- Until the eligible order appears → the order is Filled.
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