A stop-loss order is an enhanced version of a basic market order. The difference is that with a stop-loss order, you place a condition on when a market order is placed onto the order book.
If the condition is met, a market order will be created and the order will be filled at the best available price on the market. Traders can use this order type if they want to cap their loss in case the price drops against their favour, ensuring the order gets fulfilled immediately (because it will get executed as a market order).
1. Navigate to a trading pair and select Stop-Loss Limit/Take-Profit Limit or Stop-Loss Market/Take-Profit Market under the Stop-Loss Limit dropdown menu.
2. Input the following parameters:
Trigger Price - your market order will only be placed on the order book if the market price reaches this trigger price.
Limit Price (if applicable) - pre-specified price to buy or sell
Quantity - the amount of crypto you want to trade.
3. Depending on whether the stop price is greater than, lower than, or equal to the market price, the system will create a stop-loss order or take-profit market order.
4. The stop-loss or take-profit market 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 market order will be placed.
If the user chooses to purchase at market price, then the market order will be executed immediately at the best available price on the market and the unfilled portion (if any) will be canceled automatically.
If the user chooses to purchase at limit price, then the limit order will be filled once the market hits the limit price.