Smart Orders: Stop Loss
Introduction
Managing risk is a critical component of any trading strategy, and Stop Loss orders play an essential role in helping traders protect their positions during unexpected market movements. This guide outlines how different types of Smart Stop Loss orders function (e.g. Stop Market, Stop Limit), as well as the optional cooldowns that can be included with them. By understanding these tools, traders can more effectively safeguard their positions.
Contents
Using Stop Loss Orders
The Smart Stop Loss can be used to add a Stop Loss to a new position. Any entry type can be combined with a Smart Stop Loss order: Market, Limit or Ladder.
The Smart Stop Loss can also be combined with any or all of the other Smart Order options: Start Position At, Expire Position At, Take Profit/Exit Ladder and Time-Based Auto Close.
After filling in the entry order details, switch on the Stop Loss option (shown below).
Stop Market
Once the Stop % or price is reached, a Stop Market order will exit immediately at the best available price in the Order Book.
Stop Limit
The Stop Limit Smart Order allows the trader to choose a Limit price (for a Sell, this would be the lowest price at which the order will sell, once the Stop price is reached).
With a Stop Limit order, the Limit Order is entered in the Order Book when the Stop price is reached. If the Limit price is better than the current price, then the order can be partly or fully filled at the best available prices.
If the order is partially filled, the Limit order for the unsold coins will remain in the Order Book until the price is reached, or the order is cancelled.
- Stop %: This price triggers the Limit Order to be placed. Choose a percentage below the average Entry Price. Then if needed, the Stop Price order flag in the chart can be dragged up or down.
- Limit %: The price at which the limit order will be placed, once the Stop is triggered. The percentage is based on the average Buy price for the order. The Limit Price order flag in the chart can also be dragged up or down.
Stop Loss Cool Down
An additional option for the Stop Loss are the cool downs. Once the price drops below the stop loss level, the stop loss cool down is triggered.
If the price is still below the stop price when the cooldown timer finishes, the stop loss will be triggered. However, if the price is above the stop price when the cooldown timer finishes, the timer is reset.
Stop Loss cooldowns are further explained in detail, within the following article: Smart Orders: Stop Loss including optional Cooldowns (Time and Candle Close) (NEW)
Stop Loss Warning
If Auto-Confirm Orders is disabled in the Trading widget, a warning will be shown in the confirmation window, when Place Order is clicked (shown below):
A Stop Loss order is not placed on the exchange until the stop price is reached, which may prevent it from being executed at the desired price. Although, this is very rare on markets with sufficient trading volume/high liquidity, as it usually only occurs when there's been a very swift and sudden market crash.
Updated on: 02/12/2025
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