A stop-limit order is an enhanced version of a basic limit order. The difference is with a stop-limit order, you place a condition on when the limit order is placed onto the order book.
If the condition is met, a limit order will be created (for the price you set), and when the market price reaches your limit price, the order will be filled at a better or the same price. Traders can use this order type if they want to cap their loss in case of the price drops against their favour at a price they want to set.
You can have only one limit order per trading pair at a time.
1. Navigate to a trading pair and select Stop Limit under the Advanced dropdown menu.
2. Input your Stop Price, your limit Price, and the Amount.
Stop (Stop Price): This is also known as the trigger price -- your limit order will only be placed on the order book if the market price reaches this trigger price.
Limit price: This is the price at which you want your order to be filled. This is the price you would set with a basic limit order.
Amount: This is the amount of crypto you want to trade at the limit price you set.
3. Depending on whether the stop price is greater than, lower than, or equal to the market price, the system will create a stop-limit order or a take-profit limit order.
4. The stop-limit or take-profit limit order will be created, and you will see the order details along with the trigger condition under Open Orders.
5. Once the market price reaches the trigger condition (equal to or higher, equal to or lower), a limit order will be placed.
6. The limit order will then be filled once the market price reaches this price or better.