Dear BW users,
Stop-Limit is that the trigger price, the commission price after the trigger, and the order quantity are set in advance. When the latest price reaches the trigger price, it will hang up the order according to the pre-set commission price.
Trigger price: when the "latest price" reaches the set "trigger price", the "Stop-Limit" order will be triggered to complete the order.
Commission price: after the "Stop-Limit" order is triggered, the order will be placed according to the commission price.
Quantity: "order quantity" after triggering.
Case 1 (stop profit)
Take ETH/USDT for example: the user buys 10 ETH at the unit price of 120 USDT, and ETH may be blocked and fall when it rises to 140 USDT. In order to lock in profits, when the price rises to 140 USDT, the user delegates to sell 10 ETH at the price of 140 USDT.
Case 2 (stop loss)
Take ETH/USDT for example: the user buys 10 ETH at the unit price of 120 USDT. If ETH drops to 100 USDT, it is likely to fall to a lower price. To avoid further losses, when the price drops to 100 USDT, the user delegates to sell 10 ETH at 100 USDT.
Case 3 (stop profit)
Take ETH/USDT for example: the current price of ETH is 120 USDT, and the user thinks that if ETH falls to 110 USDT, it may stop falling and increase. In order to buy ETH at a lower cost, when the ETH price falls to 110 USDT, the user buys ETH at 110 USDT.
Case 4 (stop loss)
Take ETH/USDT for example: the current price of ETH is 120 USDT, and users think that if ETH can rise above 140 USDT, it may continue to rise to a higher price. In order to avoid higher purchase cost after ETH rises above 140 USDT, when ETH price rises to 142 USDT, 142>140, users are willing to buy ETH at the price of 142 USDT.
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BW, Bit World, Better World
BW.com Global Operations Team
December 26, 2019