Coinbase, Exchanges

What Is Stop and Limit Price in Coinbase?

A stop-limit order is an order to buy or sell a security at a specified price or better, after a given stop price has been reached. Once the stop price is reached, the order becomes a limit order to buy or sell at the limit price or better.

A stop-limit order is not guaranteed to execute. .

A limit order is an order to buy or sell a security at a specified price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.

NOTE: WARNING: Trading with stop and limit prices in Coinbase can be risky. Stop prices are used to set the maximum amount you’re willing to pay for an asset, and limit prices are used to set the minimum amount you’re willing to sell for. If you are not careful when setting these prices, you may end up paying more or getting less than you expected. Always make sure that your stop and limit prices make sense given the current market conditions.

A stop price is the price at which a stop-limit order becomes a limit order.

The main difference between a stop and a limit order is that with a stop order, execution is guaranteed, while with a limit order it is not. With a stop-limit order, the investor specifies two prices: the stop price and the limit price.

The advantage of this type of order is that the investor knows exactly what price they will get if the order is executed. However, there is no guarantee that the order will be executed because if the stock never reaches the stop price, then the order will never become a limitorder.

A limitorder does not have this same guarantee of execution because it only executes at the specifiedprice or better. This can be an advantage if you think a stock will continue to rise because youcan still get your execution even if it doesn’t reach your ideal Target price, but it can also bedisadvantaging because there’s no guarantee that it will execute at all and you may have tomiss out on potential gains if the stock keeps rising.

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