In the context of digital assets, can you share an example of a stop-limit order and how it can be beneficial for traders?

1 answers

• Nov 24, 2021 · 3 years ago
  As a trader on BYDFi, you can use stop-limit orders to manage your digital asset positions effectively. Let's say you own Ethereum and want to sell it if the price drops below $2,000. You can place a stop-limit order with a stop price of $2,000 and a limit price of $1,990. If the price drops to $2,000, your order becomes active, and if the price reaches $1,990 or higher, your order will be executed. This type of order can be beneficial for traders as it allows them to automate their trading strategy and protect their positions from significant price declines.
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