How to Place A Stop Order

Stop Order Types

1. Stop-Limit Order: You need to preset the order price and amount and the trigger price when placing a Stop-Limit Order. After the market price reaches the trigger price, a limit order of your preset price and amount will be systematically submitted into the order book.

No assets will be frozen for your untriggered stop orders.

During order submission, you can adjust the trigger price according to different price types: Execution Price, Mark Price, Index Price.

 

2. Stop-Market Order: You need to preset the order amount (or value) and the trigger price when placing a Stop-Market Order. After the market price reaches the trigger price, a market order of your preset amount or value will be systematically submitted into the order book.

No assets will be frozen for your untriggered stop orders.

During order submission, you can adjust the trigger price according to different price types: Execution Price, Mark Price, Index Price.

 

How to Place a Stop Order?

1. Stop-Market Order

To place a Stop-Market Order, you need to pre-set the Stop Price and the buying/selling amount, so when the order is triggered, it will be placed automatically as a market order.

When the Stop Market Order is triggered, an Auction-Style Liquidation Strategy will be implemented, which calculates the target price range based on the optimal price, and carries out the limit order according to a predetermined price reduction ladder, that is, in every 0.5s, the order will be re-delegated at an increase or decrease of 0.5% of the order price. The strategy aims to ensure that large liquidation orders can be completely executed within a certain period in case of insufficient market liquidity. For more details, please refer to Auction-style Liquidation Strategy.

 

2. Stop-Limit Order

To place a Stop-Limit Order, you need to pre-set the Stop Price, the buying/selling price, and the amount, so when the order is triggered, it will be placed automatically as a limit order.

 

Examples on Placing a Stop Order

1. Stop-Limit Order to Buy

Assuming that the market price of BCH is 500 USDT, and you think the price will continue to rise after it reached 600 USDT. In this case, you may place a Stop-Limit Order to buy in Futures trading.

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Once the stop price 600 USDT is reached, a limit order to buy 10 BCH at 620 USDT will be automatically placed.

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2. Stop-Limit Order to Sell

Assuming that the market price of BCH is 500 USDT, and you think the price may continue to fall after it drops to 400 USDT. In this case, you may place a Stop-Limit Order to sell in Futures trading.

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Once the pre-set Stop Price (400 USDT) is reached, a limit order to sell will be automatically submitted to the order book.

Note: After the order is triggered, it will be executed at the best market price in the current market, which may be higher than your pre-set price.

 

FAQ About Stop Order

1. Will my assets be frozen after I submit the stop order?

No, your assets will NOT be frozen after you submit the stop order. Please make sure you have sufficient balance in your account before the order is triggered, otherwise it will not be placed into the market.

 

2. Why is the stop price reached but my stop order hasn't been triggered?

A: Due to rapid market fluctuation, insufficient account balance, network problems, system upgrade, etc., your stop order may not be triggered. 

For example:

(1) Stop-Limit to buy: When the current price reaches the stop price, but your account balance is insufficient to buy your pre-set amount of coins, your order will NOT be submitted into the order book.

(2) Stop-Limit to sell: When the current price reaches the stop price, but your account balance is insufficient to sell your pre-set amount of coins, your order will NOT be submitted into the order book.