A stop order, also referred to as a stop-loss order, is an order to buy or sell an asset once the price of the asset reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price.
Stop orders can be used to manage markets moving against you. An example would be if you buy some Bitcoin at €10,000. You want to limit your loss in case the price will fall down. A stop order can be placed to sell Bitcoin at €9,950. If the price of Bitcoin reaches €9,950, the Bitcoin will automatically be sold at market price. It is possible to combine limit and stop orders, to automatically place a limit order when the stop price is reached.
In CoinMetro's margin platform, you can set a stop price for your positions, which will automatically close your positions at market price, if the latest traded price reaches the stop price.
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