What is the difference between a buy to cover stop limit order and a regular limit order in the crypto industry?

3 answers

• Jan 13, 2022 · 3 years ago
  A buy to cover stop limit order is a type of order that is placed to buy back a short position at a specific price. It combines the features of a stop order and a limit order. When the stop price is reached, the order is triggered and becomes a limit order. This means that it will only be executed at the specified limit price or better. On the other hand, a regular limit order is an order to buy or sell a cryptocurrency at a specific price or better. It is not triggered by a stop price and does not have the additional functionality of a buy to cover stop limit order.
  573287
• Jan 13, 2022 · 3 years ago
  In simple terms, a buy to cover stop limit order is used to close a short position by buying back the cryptocurrency at a specific price or better. It provides more control over the execution price compared to a regular limit order. A regular limit order, on the other hand, is used to enter or exit a position at a specific price or better, without the added functionality of a stop price trigger.
  398133
• Jan 13, 2022 · 3 years ago
  At BYDFi, we offer both buy to cover stop limit orders and regular limit orders to our users. The buy to cover stop limit order is a popular choice for traders who want to close their short positions at a specific price, while the regular limit order is commonly used for entering or exiting positions at desired prices. Both order types have their own advantages and can be useful in different trading scenarios.
  413104