What is a stop-limit order and how do I place one?

Summary
A stop-limit order allows you to automate buying or selling crypto at a predefined price. It consists of two prices: a stop price, which triggers the order, and a limit price, which sets the maximum or minimum price for execution. This article explains stop-limit orders, how they work, and how to use them on Bitvavo, including stop-loss limit and take-profit limit orders.

What is a stop-limit order?

A stop-limit order helps you control your trades by defining two prices:

• Stop price: The price at which the order is activated.
• Limit price: The maximum price (for buying) or minimum price (for selling) at which the trade will be executed.

Once the stop price is reached, the limit order is placed. The order will only execute if the market price stays within your limit price.

Stop-loss limit vs. take-profit limit orders

There are two main types of stop-limit orders:

Stop-loss limit order (to limit losses)

A stop-loss limit order helps minimize losses by setting a predefined selling price.

• Stop price: When this price is reached, a limit sell order is triggered.
• Limit price: The lowest price at which you are willing to sell.

Example:
You buy Bitcoin at €30,000 and want to limit your losses.

• Stop price: €28,000
• Limit price: €27,500

If Bitcoin drops to €28,000, a limit sell order is placed at €27,500.
⚠ If the price keeps falling and no buyers are available at €27,500, your order may not execute.

Take-profit limit order (to lock in profits)

A take-profit limit order helps secure profits by selling at a higher price.

• Stop price: When this price is reached, a limit sell order is triggered.
• Limit price: The minimum price at which you want to sell.

Example:
You buy Ethereum at €2,000 and want to lock in profits.

• Stop price: €2,500
• Limit price: €2,550

When Ethereum reaches €2,500, a limit order is placed at €2,550.
⚠ The order will only execute at €2,550 or higher. If the price does not reach this level, your order remains open.

How do I place a stop-limit order?

Follow these steps to set a stop-limit order on Bitvavo:

1. Log in to your Bitvavo account.
2. Switch to Pro Mode.
   
   
3. Select the desired market (e.g., BTC/EUR).
   
4. Choose Buy or Sell.
5. Select Stop Limit as the order type.
   
6. Enter the following details:
   
   • Stop price: The price at which the order is triggered.
   • Limit price: The price at which the trade is executed.
   • Amount: The quantity of crypto you want to trade.
     
     Tip: Set a small gap between your stop price and limit price. This increases the chance of execution, especially in volatile markets.
7. Review the details and click “Preview buy/sell order”.

Your stop-limit order is now set.

Frequently asked questions

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