Stop limit order

With a stop limit order, a limit order is triggered when the trigger price is reached or exceeded.

A stop limit order has the following characteristics:

1. To use this order type, two different prices must be set:
   Trigger price: the price at which the order is triggered, which is set by you. When the last traded price reaches the trigger price, the limit order is placed.
   Limit Price: The maximum price at which you want your limit order filled. Your order will be filled for this price (or better).
   
   
2. With a stop limit order, you can reach a certain price or better. However, the order does not guarantee that execution will take place as the price may not reach or exceed your limit price.
   
   Please note: even if trading activities bring the price to your limit order price for a short time, execution may still not occur if other orders before yours take all (or part of) the available digital currency at the current price to fill.

How the stop limit order works out exactly will be illustrated below using two examples.

Example A

Imagine you only want to buy 10 Bitcoin at a predetermined price that is higher than the current price. You, therefore, set a stop limit order for the purchase of 10 Bitcoin for the price of up to €999 each at a trigger price of €990 under the following market conditions:

• The current price of Bitcoin is €980.
• When the price of Bitcoin reaches or exceeds the trigger price of €990, your order is triggered and turns into a limit order.
• Depending on supply and demand, your order will be (partially) filled at the limit price of €999 or better.

Example B

Imagine you only want to sell 10 Bitcoin at a predetermined price that is lower than the current price. You, therefore, set a stop limit order for the sale of 10 Bitcoin at the price of €980 each at a trigger price of € 990 under the following market conditions:

• The current price of Bitcoin is €999.
• When the price of Bitcoin reaches or exceeds the trigger price of €990, your order is triggered and turns into a limit order.
• Depending on supply and demand, your order will be (partially) filled at the limit price of €980 or better.

How do I submit a stop limit order?

To enter a stop limit order:

1. Navigate to Advanced.
   
   

   
   
   

2. Select the relevant market you want to trade on at the top left.
   
   

   
   
   

3. Choose a Buy or Sell order.
   
   

   
   
   

4. Choose Stop Limit.
   
   

   
   
   

5. Enter the price at which you want to set the trigger price per digital currency.
   
   
6. Enter the quantity you want to buy or sell.
   
   
7. Enter the price at which you want to set the limit per digital currency.
   
   

   What does the 'takeProfitLimit' unfavourable pricing alert mean? 

   

   Before confirming your order, the trading engine looks at the trigger price the user has set for their StopLossLimit order. If the last price is smaller than the specified trigger price, the trading engine will change the order type to TakeProfitLimit. This may cause in instantly filling your order. If you want your order to be, StopLossLimit you have to set up your order again with an adjusted trigger price. 

8. Click on 'Confirm'.

After completing the above steps, you have set a stop limit order.

Want to learn more about the different order types and when to use them? Read about it in this Bitvavo Learn article.