Conditional Order: An instruction to buy or sell that is executed at a trigger price and is used to take profit, limit loss or open a position at a desired price.

Among order types on BTCMEX – Market, Limit and Conditional – the last one is the most flexible, used to perform advanced trading strategies on the cryptocurrency exchange.

Currently on BTCMEX Conditional orders refer to Stop Market, Take Profit Market, Stop Limit, and Take Profit Limit Orders. The order type can be selected in the top left corner of the exchange.

Conditional order types on BTCMEX

Stop Market Order is an order that is not placed in the order book until BTC/USD price reaches a certain pre-set trigger price. Traders use the Stop Market Order for two main purposes:

  • As an automatic tool to enter the market at a desired price without constantly monitoring the market.
  • As a risk-management tool to limit the loss on the existing position.

A Stop Market Order is executed as a Market order when the pre-set stop price is triggered.

The trigger price for a Long position must be set at a price lower than the Last Traded Price. And in the opposite way, the trigger price for a Short position must be set at a price higher than the Last Traded Price.

Take Profit Market Order is a type of Conditional Orders, that is placed in the order book at a pre-set trigger price and is aimed to:

  • Open a position at a desired price without constantly monitoring the market while trading.
  • Close a position at a pre-set price with a profit that meets the views of a trader.

The trigger price for a Long position must be set at a price higher than the Last Traded Price. And in the opposite way, the trigger price for a Short position must be set at a price lower than the Last Traded Price.

Stop Limit Order is an alternative to a Stop Market Order, which allows traders to open and close a position at a favorable price.

By choosing this type of order traders can set both Limit Price and Stop Price, where the Limit Price is a trigger to open a position and the Stop Price is a trigger to close a position and limit loss.

Take Profit Limit Order is an alternative to a Take Profit Market Order, which allows traders to open and close a position at a favorable price.

By choosing this type of order traders can set both Limit Price and Stop Price, where the Limit Price is a trigger to open a position and the Stop Price is a trigger to close a position with a manageable profit.

Share:
Whatsapp
SOCIALICON
SOCIALICON