Sell Stop Order in Crypto


A trade order is basically an agreement to buy or sell a crypto asset at a specific price or price range. There are a number of different order types, such as a market order, a limit order, a stop limit order, and several others.

In this article, you are going to learn about the sell stop order in crypto: what it is and how it works.

Sell Stop Orders in Crypto Trading

What is a sell stop order good for anyway?

As you may already know, crypto markets are extremely volatile, which means that prices may plummet and skyrocket in a matter of hours, and even minutes.

Using a sell stop order helps avoid situations where you as a trader are put at a disadvantage due to price fluctuations. In other words, sell stop orders allow you to limit potential losses to no more than you are able to take on.

What is a Sell Stop Order?

Also known as a stop-loss order, a sell stop order is a selling order placed below the current market price. A sell stop order gets triggered whenever the price reaches that level. That is, a stop price that is set manually by a trader.

Every time the market price moves to the stop price, your sell stop order is triggered and becomes a market order that executes at the best available market price.

Have you read our complete guide to sell stop orders yet? Spare yourself some time, it’s well worth the read.

For Newbies Only?

If you believe that sell stop orders are only used by beginner traders as a safety cushion, you couldn’t be more wrong.

Sell stop orders serve as invaluable tools for experienced traders who are also good at technical analysis. This tactic can really help save money.

However, if used randomly, without much understanding of the processes, it may lead to more damage than profitable positions.

Give CoinMetro a Try

The CoinMetro exchange platform offers a wide range of practical tools to simplify trading and investing. There are options available for both absolute beginners and seasoned pros.

But just because we have those tools, doesn’t mean that you shouldn’t educate yourself. Using tools and features becomes much more efficient when you understand market behavior.

The CoinMetro blog is one of the educational tools you can use freely. There, you’ll find an array of articles – from crypto education and market news to fun posts. The latest articles about sell stop orders are a good example: Sell Stop Order: All You Need to Know, How to Set up a Sell Stop Order, and the article you’re reading right now.

CoinMetro’s demo platform is another handy tool to explore before you open a real account (we’re thinking… why not use both and play around with virtual funds before placing an order in real time?)

If you need any help, our most amazing support team is there for you 24/7. Did you know we recently got 5* on TrustPilot? There’s no issue that’s not important or that we can’t handle. Contact us in a way most convenient for you.

Till next time!