Stop Limit

Once the trigger (stop) price is hit, a limit order is created.

These are complex orders and are only executed if three conditions are met.

For a stop-limit buy these would be:

1. The current market price is above the stop price

2. The current market price is below the limit price

3. The execution price is no worse than the slippage parameter

Please note - there are a lot of parameters to be adjusted to create a stop limit order. Please ensure you review all these parameters or your order may not be executed when you expect. Please also review the comparison with stop market orders.

Examples

Bitcoin is currently trading at 55k. Alice decides to short 0.1 bitcoin once it trades under 51k. This time Alice sets a stop limit sell order for 0.1 bitcoin at 50.5k. As soon as it trades under 51k the keeper-bots tries to execute her order sell. Her execution price can be over 51k, but not below 50.5k.

Bitcoin is currently trading at 55k. Alice decides to short 0.1 bitcoin once it trades under 51k. This time Alice sets a stop limit sell order for 0.1 bitcoin with a stop price at 51k and a limit price at 50.5k. As soon as it trades under 51k the keeper-bots tries to execute her order sell. If the price drops rapidly and her order does not get executed at 51k, it will not execute the order below 50.5k.

Sushi is currently trading at 20 USD. Bob decides to buy sushi once sushi trades over 25 USD. This time Boib sets a stop limit buy order with a trigger price at 25 USD and a limit price of 26 USD. Once sushi trades over 25 USD, the keeper-bots will execute a buy order on behalf of Bob, but his execution price has to be 26 USD or less.

Sushi is currently trading at 20 USD. Bob decides to buy sushi once sushi trades over 25 USD. This time Bob sets a stop limit buy order with a stop price at 25 USD and a limit price of 26 USD. Once sushi trades over 25 USD, the keeper-bots will execute a buy order on behalf of Bob, but his execution price has to be 26 USD or less.