Help me understand stop limit

[joerack]

So, long story short, I lost some money trading APPC  using stop limit

To my understanding it works this way     (eg. fartcoin 0.036 btc)

Purchase:    STOP     {0.035}    The price I wish to buy
                  LIMIT    {0.037}    The highest price I will buy

Sell:           STOP     {0.038}    The price I wish to sell at
                  LIMIT    {0.035}    The highest loss I can stand




I get APPC at 0.00000148

It's climbing at 0.00000150

At this point I set STOP LIMIT

Sell:     STOP    0.00000155
           LIMIT    0.00000148

I come back from outing it's reached 153 then shot down at 143... I'm forced to cancel and re-purchase normally
What did I do wrong
thx




I

[Charles-Tim]

Let me use Binance to explain this for you clearly, on some exchanges, you can see it as stop loss or stop price, but they all mean the same thing.



From the image above which is the image of stop limit order tool, assuming Bitcoin price is at $33500, you set Stop (USDt) to $33100 and Price (USDt) at 33000. That means Bitcoin will be sold to buy USDt when the price of bitcoin drop to $33100, but the USDt is bought at $30000. Which means USDt is bought automatically at $33000 when bitcoin price dropped to $33100 or below but still above $33000.

From the example I used, make sure the range between the limit order price and the stop order price is achievable, do not let it be to close, because if bitcoin drop from a price above stop order to below limit order that you placed, the order will not be filled and losses may ensue.

For example, if bitcoin at $33500 dropped immediately below $33100, the order will not be filled. The order will only be filled if the price of bitcoin dropped within the range of $33100 and $33000, but if dropped below, it will not be filled. This kind of price drop may not happen while trading Bitcoin but it do happen while trading altcoin.

[joerack]

thanks for the help, it seems that I needed OCO for my purposes

[Bitcoin_Arena]

The fact is your limit order was not opened in the order book because the stop order price was not triggered. In other words, the price of the token has to reach 0.00000155 in order to trigger the limit order to sell off at 0.00000148 in the order book

In your case you said the price reached just 0.00000153 and the dropped, so this would explain why no sell off happened


STOP    0.00000155 <--- Price that triggers the limit order
LIMIT    0.00000148 <--- Price at which your token will be sold off

Always place the stop price below the current token price to avoid such scenarios. Like if you had the STOP at 0.00000150 when the token price was 0.00000153, the limit would have been executed as the price continued to drop.

[seleme]

The second post is enough to understand it but for further information, you can check free trading resources on the net. There are many youtube videos that explain the limit/stop orders and the working mechanism, no need to overcomplicate the stuff. Stop orders are usually above the market price for buy orders and lower than the market price for sell orders. It is like your order has to match the bid for sell and ask order for a buy order. Keep it simple stupid and everything will be ok.

[Fesatmas]

Let me use Binance to explain this for you clearly, on some exchanges, you can see it as stop loss or stop price, but they all mean the same thing.



From the image above which is the image of stop limit order tool, assuming Bitcoin price is at $33500, you set Stop (USDt) to $33100 and Price (USDt) at 33000. That means Bitcoin will be sold to buy USDt when the price of bitcoin drop to $33100, but the USDt is bought at $30000. Which means USDt is bought automatically at $33000 when bitcoin price dropped to $33100 or below but still above $33000.

From the example I used, make sure the range between the limit order price and the stop order price is achievable, do not let it be to close, because if bitcoin drop from a price above stop order to below limit order that you placed, the order will not be filled and losses may ensue.

For example, if bitcoin at $33500 dropped immediately below $33100, the order will not be filled. The order will only be filled if the price of bitcoin dropped within the range of $33100 and $33000, but if dropped below, it will not be filled. This kind of price drop may not happen while trading Bitcoin but it do happen while trading altcoin.

I think the explanation from him is more than enough, apply again in detail.
thank you for representing us.

I get APPC at 0.00000148

It's climbing at 0.00000150

At this point I set STOP LIMIT

Sell:     STOP    0.00000155
           LIMIT    0.00000148

I come back from outing it's reached 153 then shot down at 143... I'm forced to cancel and re-purchase normally
What did I do wrong

and try to be thorough again, so that you do it
in a careful and calculating manner.
although it's not too bad the loss you experience. it's just that to avoid that we need some defining limit indicators.

[Oshosondy]

There is another one called stop market order, it is not common on exchanges like stop loss, but it can be helpful in case the price dropped below the limit order price for the stop loss order. In this case the price if dropped below the limit order, the order will not be initiated by stop loss but initiated if stop market is used. But it will be very good to know how stop loss can help and in a way you will place it to initiate the order if price dropped, this has to be learned on its own also with little amount of money for practice.

[Cherylstar86]

There is another one called stop market order, it is not common on exchanges like stop loss, but it can be helpful in case the price dropped below the limit order price for the stop loss order. In this case the price if dropped below the limit order, the order will not be initiated by stop loss but initiated if stop market is used. But it will be very good to know how stop loss can help and in a way you will place it to initiate the order if price dropped, this has to be learned on its own also with little amount of money for practice.

Be careful with using little amount of money, because there could be a possibility that you'll be tempted to top up for huge amount if you see bigger potential. Learning is a process, so in doing stop limit quick decision could be very stressful if not managed very well. Emotion control should definitely follow before anything else.

[Oshosondy]

Be careful with using little amount of money, because there could be a possibility that you'll be tempted to top up for huge amount if you see bigger potential. Learning is a process, so in doing stop limit quick decision could be very stressful if not managed very well. Emotion control should definitely follow before anything else.

What are you driving at, you can just make further comment for your reply not correcting me. All I meant was that little amount of money can be used for practice and learning about stop loss. I made the comment that way because the OP board only ask for help about stop loss, not about how to trade. Normally little amount of money should be used for learning while discipline should be learned to overcome emotions in trading, but this is not what the topic is all about, it is about stop loss.

[SquallLeonhart]

I think learning these would be great if you use little amount of money, however you could also use practice places where they give you 10k dollar fake money and you trade on the real market and gain or lose fake money and that would be a lesson for you.

I do not agree that stop market because if I am not wrong that uses market sell instead of limit sell, which means if you put money into bitcoin at 35k and say 33k is my stop loss, you will try to sell at 33k, if price goes to 31k very quickly and you haven't sold it all, you will keep selling at 33k until it is all sold whereas stop market would mean as soon as it reaches 33k you will sell it all on market price and whatever it is. If I am right about these I rather get limit and not market sale.

[teosanru]

So, long story short, I lost some money trading APPC  using stop limit

To my understanding it works this way     (eg. fartcoin 0.036 btc)

Purchase:    STOP     {0.035}    The price I wish to buy
                  LIMIT    {0.037}    The highest price I will buy

Sell:           STOP     {0.038}    The price I wish to sell at
                  LIMIT    {0.035}    The highest loss I can stand




I get APPC at 0.00000148

It's climbing at 0.00000150

At this point I set STOP LIMIT

Sell:     STOP    0.00000155
           LIMIT    0.00000148

I come back from outing it's reached 153 then shot down at 143... I'm forced to cancel and re-purchase normally
What did I do wrong
thx




I

Stop is basically the price at which you want your order to become active. Until that the order is in sort of a passive mode. The moment the current price falls below or rises above certain point your order becomes active. Limit is basically the max price you are ready to pay. For eg.
Bitcoin
CMP: 37000
Now if you are afraid that Market might fall and you want to stop your loss and sell at 35900. Now if you put a order at $ 35900 it will immediately get executed. So what you do is this:
STOP: 36000 (this is the price at which the order becomes active)
SELL LIMIT: 35900( The minimum selling price at which it will be sold)

[Cloverfield]

One should be very careful on trading with leverage. The hardened traders with loads of experience that really know what they’re doing can trade like this. But everyone new to the space should be very cautious. Losing money in no time is around the corner. You can win big, but can lose huge as well. Newbies could swingtrade before trying anything like this. Learn and learn some more before trade with leverage. Just a heads up for anyone that want to go there..

[seleme]

One should be very careful on trading with leverage. The hardened traders with loads of experience that really know what they’re doing can trade like this. But everyone new to the space should be very cautious. Losing money in no time is around the corner. You can win big, but can lose huge as well. Newbies could swingtrade before trying anything like this. Learn and learn some more before trade with leverage. Just a heads up for anyone that want to go there..

Leverage is double-edged sword, only professional samurai can use it properly. If the trades are underwater and leverage kills the long-term profitability, better to take another chance with lower leverage. Almost all pro Hedge fund traders go with 1:10 and max 1:30 leverage because they understand the risks. Long-term and swing trading is the patience game, who can sit tight will take the reward at the end of the game. The patience is a virtue and not all traders understand this. The more the traders trade the more fees are paid to the market maker and the chances are high too to make wrong decisions.

[nelson4lov]

At this point I set STOP LIMIT

Sell:    STOP    0.00000155
           LIMIT    0.00000148

What did I do wrong
thx

In addition to everything @Bitcoin_Arena said earlier, I want to add a few things. Stop is actually the trigger price. Once it has been triggered, then the limit order is sent to the orderbook. If the trigger price isn't hit, then your order didn't make it to the order book and obviously wouldn't hit. An example will make more sense. Since you wanted to sell above 150+ sats, then you could have used:

STOP: 150sats
limit: 152 sats.

Immediately it touches 150 sats, an order to sell at 152 sats would be place. Do bear it mind that price might not always hit your trigger price and as such, your limit order won't be placed or your stop is triggered but the price didn't quite make it to the limit price resulting in no execution.

[Wind_FURY]

OP, what were you doing? Making a stop-loss order, or a take-profit order? Because you can’t make a stop-loss order above the price of the price you purchased the asset. I believe your stop order was triggered during the moment you made it, and simply didn’t notice.