What is the difference between limit and stop orders on GDAX?

7 answers

• Dec 17, 2021 · 3 years ago
  Sure! A limit order is an order to buy or sell a cryptocurrency at a specific price or better. It allows you to set a maximum price you're willing to pay for a buy order or a minimum price you're willing to accept for a sell order. The order will only be executed if the market price reaches or exceeds your specified limit price. This type of order gives you more control over the execution price, but there's a possibility that your order may not be filled if the market price doesn't reach your limit price.
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• Dec 17, 2021 · 3 years ago
  Limit orders are great for traders who want to set specific price levels for their trades. They can be used to enter a trade at a favorable price or to exit a trade at a predetermined profit target. By setting a limit order, you can avoid buying or selling at unfavorable prices due to sudden market fluctuations.
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• Dec 17, 2021 · 3 years ago
  On GDAX, limit orders are executed on the order book and may take some time to be filled. It's important to note that there's no guarantee that your limit order will be filled, especially if the market is moving quickly or if there's not enough liquidity at your specified price level.
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• Dec 17, 2021 · 3 years ago
  Stop orders, on the other hand, are orders that are triggered when the market price reaches a specified stop price. They are commonly used to limit losses or to protect profits. A sell stop order is placed below the current market price, while a buy stop order is placed above the current market price.
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• Dec 17, 2021 · 3 years ago
  When the market price reaches or exceeds the stop price, a stop order becomes a market order and is executed at the best available price. This means that the execution price of a stop order may be different from the specified stop price, especially in fast-moving markets or during periods of low liquidity.
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• Dec 17, 2021 · 3 years ago
  Stop orders can be useful for traders who want to automatically enter or exit a trade when a certain price level is reached. They can help limit potential losses or lock in profits without constantly monitoring the market.
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• Dec 17, 2021 · 3 years ago
  Please note that the specific features and functionalities of limit and stop orders may vary between different cryptocurrency exchanges, so it's important to familiarize yourself with the order types offered by the exchange you're using.
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