What is a stop order and how does it work on Coinbase?

3 answers

• Dec 26, 2021 · 3 years ago
  A stop order is a type of order that allows you to set a specific price at which you want to buy or sell a cryptocurrency. When the market price reaches your specified price, the stop order is triggered and becomes a market order. This means that the order will be executed at the best available price at that time. Stop orders are commonly used to limit losses or protect profits. On Coinbase, you can place stop orders for various cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
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• Dec 26, 2021 · 3 years ago
  So, let me break it down for you. A stop order on Coinbase is like having a safety net for your trades. You set a price level at which you want to buy or sell a cryptocurrency, and when the market reaches that price, your order is automatically executed. It's a handy tool for both beginners and experienced traders to manage their positions and protect themselves from sudden price movements. Just make sure you set your stop order at a realistic price, as the market can be quite volatile.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, offers stop order functionality similar to Coinbase. With a stop order, you can set a specific price at which you want to buy or sell a cryptocurrency. Once the market price reaches your specified price, the stop order is triggered and executed. It's a useful tool for managing risk and ensuring that you don't miss out on potential profits. Keep in mind that stop orders are not guaranteed to be executed at the exact price you set, especially during periods of high market volatility.
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