What is a Stop Order on Crypto Exchanges?

Also known as a stop-loss order, a stop order is a type of order used on a cryptocurrency exchange designed to limit potential losses or protect profits in a specific trade. It serves as an essential risk management tool for investors, initiating an automatic market order when a cryptocurrency’s price reaches a certain trigger price known as the stop price. In this article, we’ll delve into what a stop order is, how it works, and other related topics in cryptocurrency exchanges. Stop Order: What Is It? A stop order, frequently used in financial markets and available in crypto exchanges, is a stop-loss order. It’s a type of order given by investors to automatically execute a transaction when a cryptocurrency’s price reaches a specific stop price. In crypto exchanges, a stop order is generally used to limit potential losses or protect profits in cryptocurrency trading. There are two types of stop […] The post What is a Stop Order on Crypto Exchanges? appeared first on COINTURK NEWS.