How to Use a Stop Limit Order

Solve your problems and learn more about related topics through our tutorial video:

How to Use a Stop Limit Order?

More details are available in the whole article below.

1.  Log in FAMEEX website and click [Spot] at the top of the list and scroll down to [Trade].

2. Enter spot trading page and choose a trading pair. Select [Stop Limit] as your trade setting.

3. A Stop Limit order is a conditional order in which you can set your order with "Stop price", "Price", and "Amount" in advance. The system will then place your order in the market when it matches your settings. This will help secure your profit and reduce your loss.

Glossary

(1) Stop Price: When the last price matches the preset stop price, the stop-limit order will be triggered to open your order by system.

(2) Price: your order will be triggered and placed in the market at the specified price you set.

(3) Amount: Your can set your preferred amount for your stop limit order.

In order to prevent the user from a loss which can be avoided, FAMEEX limits the stop limit order with the following conditions:

1. (1) Buy-in: The price can’t be 110% higher than the stop price.
   

2. (2) Sell-out: The price can’t be 90% lower than the stop price.

Take BTC/USDT as an Example

(1) Stop loss scenario: 

If you open the order at 5764.05 USDT to buy 10 BTC, the support level suggests to be around 5615.45 USDT. If the price goes down and breaks the support level, it implies a next leg of a downtrend. If you want to stop your loss, you can set up the price at 5591.13 USDT to sell 10 BTC as your stop limit order.

Order Parameters:

Mode: Sell out

Stop Price: 5615.45 USDT

Price: 5591.13 USDT ( Your filled price is based on the last trade price in the market.)

Amount: 10 BTC

(2) Take profit scenario:

You open the order at 5772.31 USDT and the technical indicators show 5865.45 USDT as resistance. If the price pushes above the resistance level, it may be seen as bullish momentum and the price could be rising. You can, therefore, set up the stop price at 5915.15 USDT to buy 20 BTC to make more profits.

Order Parameters:

Mode: Buy in

Stop Price: 5865.45 USDT

Price: 5915.15 USDT ( Your filled price is based on the last trade price in the market.)

Amount: 20 BTC