A stop order is a way to protect yourself against a price decrease or, alternatively, to take advantage of an undervalued asset's upward trend by setting a suitable price for the order. Note that the order may not necessarily be executed exactly at the price you set. The trade occurs when the market reaches or crosses the limit you specified.
A stop sell order is a sell order set in case of a sudden price decrease. If the price on the Coinmotion platform goes below the specified limit, the sale is executed at the market price before a significant loss occurs.
- Example: if bitcoins were bought at a rate of €30,000/BTC, and you don't want to risk a decrease in value of more than €5,000, a stop sell order would be set at €25,000/BTC.
The stop sell order can be set for either the entire capital or a partial amount.
To place a stop sell order:
- Go to the Trading page and select "Sell."
- Choose your desired cryptocurrency and select "Stop Order" from the Type field.
- Define the limit price, expiration date, and the amount you want to use for the order (in euros or the selected cryptocurrency).
- Click "Sell."
A stop buy order is a buy order set in case of a sudden increase in value. In this scenario, you can participate in an upward trend even if you have missed part of the increase in value.
- Example: if an investor believes that the bitcoin price will experience a significant increase after surpassing €30,000, the order could be placed at, for instance, €32,000. In this case, bitcoins are automatically purchased at the market price when the price surpasses the set limit.
To place a stop buy order:
- Go to the Trading page and select "Buy."
- Choose your desired cryptocurrency and select "Stop Order" from the Type field.
- Define the limit price, expiration date, and the amount you want to use for the order (in euros or the selected cryptocurrency).
- Click "Buy."
To cancel a stop order:
The funds allocated to the order remain reserved for the duration of the order. If you wish to cancel a stop order, you can do so by logging in and navigating to "Trading" - "All Orders."
In the mobile application, you can cancel the stop order you placed by selecting "Trading" - "Trading History." Choose the desired order and click "Cancel Order."
Maximum amount and expiry date:
- Duration of the order can be up to 7 days
- The maximum amount for a single order is 25,000 €