A stop-limit order is one of the advanced order types available on BTSE Indonesia, in addition to market orders and limit orders. Before using a stop-limit order, it is highly recommended to understand how market and limit orders work to optimize your trading strategy.
A stop-limit order consists of two main components:
- Stop Price
The trigger price that activates your limit order. - Limit Price
The price at which your asset will be bought or sold once the stop price is reached.
How Does a Stop-Limit Order Work?
When the market price reaches or passes the stop price, the system will automatically place a limit order into the order book at the limit price you have specified.
Although the stop price and limit price can be set the same, it is generally recommended to leave a gap between them. For sell orders, set the stop price slightly above the limit price. For buy orders, set the stop price slightly below the limit price. This approach increases the likelihood that your order will be executed.
How to Use a Stop-Limit Order on BTSE Indonesia
For example, you buy 0.078 BNB at a price of 401,816 IDR because you believe this level is a strong support area and the price is likely to rise.
However, to protect your position in case the price moves downward, you can place a sell stop-limit order with the following settings:
- Stop Price: 401,616 IDR (trigger price)
- Limit Price: 401,416 IDR (execution price)
- Amount: 0.078 BNB
After filling in the required details, click “Sell BNB” and confirm your order in the pop-up window. The order will become active once the market price reaches or falls below 401,616 IDR, and the system will attempt to execute it at 401,416 IDR.
- A stop-limit order does not appear in the order book until the stop price is triggered.
- If the market price does not reach the limit price, your order will remain open and unfilled.
- In highly volatile market conditions (when prices move very quickly), your order may not be executed. In such situations, you may consider using a market order to exit your position more quickly.
By understanding the function and proper use of stop-limit orders, you can build a safer and more efficient trading strategy on BTSE Indonesia.
If you have any further questions, please contact BTSE Indonesia Customer Support for assistance.
