/biz/ - Business & Finance

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Limit executes at the price you state it to, stop limit allows you to hit 1 point and then sell at a different in case it DOES tank but if it doesn’t and returns to the previous set point then it won’t sell and you keep profit
Limit sell if your looking to get rid of a security, stop limit is better if you’re not sure about whether the security will tank and want to stay in it if it doesn’t

>>13261567
Thanks for the answer.

I still didnt get it!!

Say for example btc price is 4500 and you want to get out if price gets lower around 4200.

1st case: I set a sell limit @ 4200.
2nd case: I set a stop @ 4300 with limit @ 4200.

In both of the cases if the price goes low around 4200 the order is going to execute no matter if the price goes right back up again or continues to drop to 0. What's the catch?

bumpity bump for answer?

Pro traders halp.!

answer plox?

>>13261648
investopedia has all your answers and more fren

>>13261744
i browsed investopedia but couldnt get why not just use a limit sell order? It has the same result. Moreover regarding sell stop-limit: if the price of a stop is very close to the limit it probably wont execute.

TL;DR Why dont just use sell limit orders!?

>>13261648
In the first case, you would be putting an order for 4200 directly in the orderbook, so you’re saying “right now, while Bitcoin is at a market price of 4500, I want to sell at a price of 4200”. Someone will immediately buy it from you at such a cheap price.

But with a stop order, the order of 4200 will only go into the order books once the price is 4300. So no one can buy it from you at 4200 until the market price reaches 4300. It’s a much safer bet.

>>13261825
Got it. Thank you, wise anon

>>13261547
On holding, a limit is selling on an up and a stop is selling on a down, you idiot