Cryptocurrency Q&A
What is a stop limit order on Deribit?
What is a stop limit order on Deribit?
ethan_harrison_chef
Thu Oct 03 2024
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6 answers
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Can you explain what a stop limit order is on the Deribit platform, and how it differs from other order types? Is it a common strategy used by traders to manage risk or capitalize on market movements? How does it work in practice, and what are the benefits and drawbacks of using this type of order? Additionally, are there any specific considerations traders should make before placing a stop limit order on Deribit?
6 answers
Lorenzo
Sat Oct 05 2024
Stop-limit orders offer traders the advantage of specifying both the stop price and the limit price. This strategy allows for tighter control over the price at which an order is executed. However, in a rapidly moving market, these orders may not always be filled due to the strict price constraints.
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KatanaSwordsmanship
Sat Oct 05 2024
An alternative to stop-limit orders is the stop market order. This type of order guarantees that the trade will be executed at the prevailing market price, ensuring that the order is filled. However, the price at which the order is executed is not guaranteed, which can result in slippage.
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Giulia
Fri Oct 04 2024
To mitigate the risks associated with slippage, traders may opt for a trigger last-price feature. This feature ensures that the stop market order is triggered based on the last traded price in the order book, providing a more accurate reflection of the current market conditions.
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Federico
Fri Oct 04 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of traders of all levels. One of the key services offered by BTCC is spot trading, which allows users to buy and sell cryptocurrencies at the current market price.
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SeoulStyle
Fri Oct 04 2024
In addition to spot trading, BTCC also provides futures trading services. Futures trading allows traders to speculate on the future price of cryptocurrencies, potentially earning profits from price movements.
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