What is the difference between stop loss and limit order in the context of digital currencies?

1 answers

• Jan 14, 2022 · 3 years ago
  Stop loss and limit orders are commonly used in digital currency trading to manage risk and execute trades at desired prices. A stop loss order is placed below the current market price for a long position or above the current market price for a short position. It is triggered when the price reaches the specified level, automatically closing the trade to limit potential losses. On the other hand, a limit order is placed at a specific price or better. It allows traders to buy or sell a digital currency at a desired price. The order may not be executed if the market does not reach the specified price. Both types of orders are important tools for traders to manage risk and maximize profits in digital currency trading.
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