What is an example of a trailing stop limit order in the context of cryptocurrency trading?

3 answers

• Sanjay MohanJan 23, 2025 · a year ago
  Sure! A trailing stop limit order is a type of order that allows you to set a stop price, as well as a limit price. Let's say you're trading Bitcoin and its current price is $10,000. You want to set a trailing stop limit order with a stop price of $9,500 and a limit price of $9,400. If the price of Bitcoin drops to $9,500, the order becomes active and a limit order to sell is placed at $9,400. If the price continues to drop and reaches $9,400, the order is executed. The trailing stop limit order differs from a regular stop limit order because the stop price is adjusted based on the price movement. In this example, if the price of Bitcoin increases to $10,500, the stop price will also increase to $10,000, maintaining a $500 trailing stop.
  747

  374
• AmbeAug 23, 2025 · 5 months ago
  Here's a real-life scenario to help you understand how a trailing stop limit order works in cryptocurrency trading. Let's say you bought Ethereum at $400 and you want to protect your profits in case the price drops. You set a trailing stop limit order with a stop price of $380 and a limit price of $370. If the price of Ethereum drops to $380, the order becomes active and a limit order to sell is placed at $370. If the price continues to drop and reaches $370, the order is executed. However, if the price of Ethereum increases to $420, the stop price will also increase to $410, maintaining a $10 trailing stop.
  615

  205
• Eduardo DiasFeb 27, 2024 · 2 years ago
  BYDFi is a popular cryptocurrency exchange that offers trailing stop limit orders. With BYDFi, you can easily set up a trailing stop limit order to protect your profits and minimize losses. Simply specify the stop price and limit price, and BYDFi will automatically adjust the stop price based on the price movement. It's a great tool for active traders who want to take advantage of price fluctuations in the cryptocurrency market.
  432

  108